What Is the Journal Entry to Record Realized Loss on Investment?

[fahmidaemran]

What Is the Journal Entry to Record Realized Loss on Investment?
There's no way around it, sometimes your business investments go south. When they do, you need to report the losses in your financial statements and accounting ledgers. An unrealized loss is one that takes place on paper. Suppose the stock you hold in another company has lost $5,000 but you aren't selling. As long as you hold the stock, your loss is unrealized. If you sell at the lower price, you then have a realized loss.