If an investment bond is sold at a loss do you first reverse any interest income that was previously...

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If an investment bond is sold at a loss do you first reverse any interest income that was previously recorded on the bond and then book the rest to a loss account or do you book the entire loss to the loss account?

David · Accepted Answer

When Interest is received on Bond it is credited to Income Account. Reversal of Interest Income will not 
be made at the time of sale of bond even if it is sold for a loss. So when the bond is sold for a loss,

If an investment bond is sold at a loss do you first reverse any interest income that was previously recorded on the bond and then book the rest to a loss account or do you book the entire loss to the...

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