How to record gain on marketable securities
Records the realized gain from the sale of short-term liquid investments.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash at Bank | Asset | 12,000.00 | - |
| Short-Term Marketable Securities | Asset | - | 10,000.00 |
| Realized Gain on Investment | Revenue | - | 2,000.00 |
💡 Accountant's Note
When a short-term investment is sold for more than its carrying value, the difference is recognized as a realized gain in the income statement.
Practitioner & Systems Framework
💻 ERP Architecture
Update the investment sub-ledger to close the security position and generate the gain entry.
⚠️ Audit Flags
Discrepancies between investment ledger cost basis and sale proceeds.
📄 Required Documentation
Brokerage trade confirmation and cost basis records.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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