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How to write accounting entries when selling stocks?

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Stocks can be bought or sold from beginning to end. When an enterprise buys gold stocks and sells them again, it can be accounted through the investment income account and the trading financial asset account. How to prepare the relevant accounting entries?

Accounting entries for stock sales

1. When buying:

Debit: Trading financial assets - stocks

Credit: other monetary funds - securities companies

2. When selling:

Debit: other monetary funds - securities companies

Credit: trading financial assets stock

3. Investment income (loss reversed)

① Accounting with transactional financial assets

Debit: other monetary funds - investment deposits

Credit: trading financial assets

income from investment

② Accounting by long-term equity investment account

Debit: bank deposit and other accounts

Credit: long-term equity investment

income from investment

What are transactional financial assets?

Trading financial assets refer to financial assets measured at fair value with changes recorded in current profits and losses, and also refer to financial assets held by enterprises for sale in the near future, including stocks, bonds, funds, etc. purchased by enterprises from the secondary market to earn price differences.

What is long-term equity investment?

Long term equity investment refers to obtaining the shares of the invested entity through investment. An enterprise's equity investment in other entities is usually regarded as long-term holding, and it can control the invested entity through equity investment, or exert significant influence on the invested entity, or establish close relationship with the invested entity to diversify business risks.

What is the return on investment?

Investment income refers to the income from external investment of enterprises or individuals (the loss incurred is negative), such as dividend income, bond interest income from external investment of enterprises and profits from joint ventures with other units.

How to make accounting entries for selling shares

Accounting entries for sale of shares

1. When selling shares, the accounting entry is:

Debit: bank deposit;

Credit: transactional financial assets - cost;

Trading financial assets - changes in fair value;

Investment income (reverse in case of loss)

2. Change in fair value originally included in the stock transferred out:

Debit: profit and loss from changes in fair value (or credit);

Credit: investment income (or debit);

The shares held by enterprises shall be classified as financial assets measured at fair value and the changes of which shall be included in the current profits and losses. When selling shares, they shall be accounted through the "transactional financial assets" title, debited to "bank deposits" according to the amount actually received, credited to the "transactional financial assets - costs, changes in fair value" title according to the book balance of shares, and credited to the "transactional financial assets - costs, changes in fair value" title according to the difference, Credit or debit the "investment income" account.

At the same time, the changes in fair value originally included in the stock are transferred out, and the "profit and loss from changes in fair value" title is debited or credited, and the "investment income" title is credited or debited.

3. When an enterprise actually receives dividends, the accounting entries that should be prepared are:

Debit: bank deposit;

Credit: interest receivable;

4. When an enterprise sells shares, it carries forward the balance of trading financial assets and recognizes the investment income or loss based on the results after carrying forward. The accounting entries that should be prepared are:

A、 The accounting entries that should be prepared for investment income are:

Debit: transactional financial assets of bank deposits - changes in fair value (all carried forward);

Credit: transactional financial assets - cost (all carried forward);

Investment income (generating income);

B、 The accounting entries that should be prepared for investment losses are:

Debit: bank deposit;

Trading financial assets - changes in fair value (all carried forward);

Investment income (loss);

Credit: transactional financial assets - costs (all carried forward).

How to make accounting entries when selling stocks

When selling trading financial assets, the difference between the fair value of the financial assets at the time of sale and their initial recorded amount shall be recognized as investment income, which shall be debited to "bank deposits" and credited to "trading financial assets - costs", "trading financial assets - changes in fair value" and "investment income".

At the same time, the investment income/loss shall be recognized according to the difference between the initial cost and the book balance, which shall be debited or credited as "profit and loss from changes in fair value", and credited or debited as "investment income".

At the time of disposal, the book value and disposal price should first be recorded as investment income. Secondly, the amount of the changes in fair value previously recorded in the profits and losses of changes in fair value should be transferred to the disposal of financial assets in investment income transactions.

If added:

Debit: bank deposit (actual selling price)

Credit: transactional financial assets - cost.

Trading financial assets - changes in fair value.

Investment income - investment income of trading financial assets.

At the same time, the amount previously included in the profit and loss of changes in fair value is transferred to "investment income". Debit: profit and loss of changes in fair value - profit and loss of fair value of trading financial assets.

Credit: investment income - investment income of trading financial assets.

Extended data:

Main accounting treatment of investment income:

（1） If the long-term equity investment is accounted for using the cost method, the enterprise should debit the "dividend receivable" title and credit this title according to the part of the cash dividends or profits declared to be distributed by the investee that belongs to the enterprise; The distribution amount of the net profit realized by the investee before obtaining the investment shall be credited to the "long-term equity investment" as the recovery of the investment cost.

（2） If the long-term equity investment is accounted by the equity method, on the balance sheet date, the attributable share shall be calculated according to the net profit or adjusted net profit realized by the investee, which shall be debited to the "long-term equity investment - profit and loss adjustment" account and credited to this account.

If the investee suffers losses and its share of losses exceeds the long-term equity investment, which offsets the book value of long-term equity, it shall debit the "investment income" account and credit the long-term equity investment - profit and loss adjustment account.

If the investee with losses realizes net profits in the future, the enterprise shall calculate its share of the profits. If there are unrecognized investment losses, it shall make up for the unrecognized investment losses first. If there is still a balance after making up the losses, it shall debit the "long-term equity investment - profit and loss adjustment" account and credit this account.

（3） When selling a long-term equity investment, the account of "bank deposit" should be debited according to the amount actually received. If the provision for impairment has been made previously, the account of "provision for impairment of long-term equity investment" should be debited.

Credit the "long-term equity investment" account according to its book balance, credit the "dividend receivable" account according to the cash dividends or profits that have not been received, and credit or debit the account according to its difference.

When selling the long-term equity investment accounted by the equity method, the amount originally recorded in the "capital reserve - other capital reserves" title should also be carried forward according to the proportion of the investment cost of the disposal of long-term equity investment, and the "capital reserve - other capital reserves" title should be debited or credited, and the title should be credited or debited.

Mountains and rivers are affectionate 2024-06-21 13:46:46

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