Non-Profit

Endowment Realized Loss on Investment Sale

Recording a loss when an endowment investment is sold below its carrying value.

Account NameTypeDebit ($)Credit ($)
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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