Unrealized Gains/losses on trading debt securities
Hello:
I am trying to debit my trade securities accounts (current assets on balance sheet) and credit my unrealized gains/loss account (income statement - other comp income), and when I do this, I get a correct unrealized gain account, but an increase in my trade security account. And vice versa.
That's correct. Debits increases assets and credits increase income (equity) so you should see an increase in both the trade securities asset and the unrealized gain other income account. Were you expecting something different? Double-entry accounting must always keep the balance sheet balanced (Assets + Liabilities + Equity). You wouldn't have income unless the asset increased by a corresponding amount.
Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
