Non-Profit
Endowment Realized Loss on Investment Sale
Recording a loss when an endowment investment is sold below its carrying value.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank (Endowment) | Asset (+) | 45,000.00 | - |
| Realized Loss on Investments (Endowment) | Expense (+) | 5,000.00 | - |
| Investments (Endowment) | Asset (-) | - | 50,000.00 |
💡 Accountant's Note
Losses reduce the endowment's net asset balance. Persistent losses can make an endowment 'underwater' — where the fair value falls below the original gift amount (historic dollar value).
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