i know sanju what u r trying to say .. let me try   when u value the trading securities according to market value u pass a journal entry

securities account  DR

   unrealised profit    CR      and vice a versa

rt?? soo the profit and loss goes to income statement rt ? as unrealised   for valuation

in other case with available for sale u transfer the unrealised profit/loss on sale to comprehensive income and u reverse that when u sale and the loss on actual sale (which is diff b/w the cost and selling price ) soo lets ee if the cost was 40000 and it was valuied to 50000  soo unrealised profit goes to PUFE of 10000

and when u sell entry is passed to reverse the entry of unrealsed profit that means that the securties come to actual cost and than the actual full loss (i.e the price b/w cost and SP )in taken in income statement

and in trading securities u have already booked the loss while valuation and the loss for sale is separetey booked

i hope i made u clear ..i am not very good at  written communication but if u still feel that its not clear let me know we can try further

shasso2000, i think the explanation is helpful ! you are correct that valuation account is sometimes debit, sometimes credit, that is, the self adjusting account...

this is something i should retain in my head. Thanks!