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    Katy Holder's Avatar
    Katy Holder Posts: 1, Reputation: 1
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    #1

    Dec 3, 2007, 05:40 PM
    Journal entry for sale of long term investment
    Cash 42000
    Long-term investments 42000

    If the investment was originally purchases for 30000, does that matter? Should there be a separate je to account for that?
    Shams20's Avatar
    Shams20 Posts: 2, Reputation: 1
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    #2

    Jan 31, 2010, 01:35 PM
    Yes, because we got profit here.. so the entry would be..

    Cash A/c - Dr 42000
    To Profit on sale of investment 12000
    To Long Term Investment A/c 30000
    Shams20's Avatar
    Shams20 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 31, 2010, 01:35 PM
    Yes, because we got profit here.. so the entry would be..

    Cash A/c - Dr 42000
    To Profit on sale of investment 12000
    To Long Term Investment A/c 30000
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Feb 4, 2010, 10:16 PM

    A basic rule to pay attention to: you have to take something out at the same amount it went in for. If you purchased it at 30,000, it's in the account at 30,000. If you took 42,000 out, you'd end up with a negative balance. You can't take something out that isn't there.
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