Investment ledger
01/09/2022 0 By indiafreenotesInvestment account is an account opened for the purpose of the investment. Further, if the number of investment is large, a separate account for each investment should be opened.
Accounting entry on the purchase of any investments are given as hereunder:
On purchase of investment | Investment A/c Dr.
To Cash/Bank A/c (Being Investment made) Note: Investment account is inclusive of purchase expenses like stamp duty, Commission, and brokerage. |
On Sale of investments | Cash/Bank A/c Dr.
To Investment A/c (Being Investment made) Note: Investment account will be credited with net realized value of investment. |
Interest and dividend account | Cash/Bank/Investment A/c Dr.
To Dividend/Interest A/c (Being Interest/dividend received on investments) Note: Investments account will be credited in case, interest/dividend accrue and cash/bank account will be debited (in case) with net realized value of investment. |
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