Question

profit on sale of investment transfer to which account?​

Answer 1

Answer:

These are treated as fixed assets. That is why if this type of investments are sold at a profit, profit on such sale of investment is transferred to Capital Reserve Account and not to Profit and Loss Account.

Explanation:

Answer 2

Answer:

Profit on the sale of investment is transferred to Capital Reserve Account.

Explanation:

Investments are treated as fixed assets. That is why investments are sold at a profit, profit on such sale of investment is transferred to Capital Reserve Account and not to the Profit and Loss Account.