How do I record a trading loss?

Accounting
1

My Ltd bought some bitcoin and then sold that bitcoin later at a loss.

I read this. I created a Merchant Account for the bitcoin. Then I added all the transactions, including a separate transaction for the loss. Now I want to tag the loss transaction.

Is it “miscellaneous income” even though it’s a loss, not profit? Or is there some account for miscellaneous or other losses? Or should I create a new account for it? Any advice would be greatly appreciated. :slight_smile:

2

I spent some time looking at the options, and in the end I tagged it as “Exchange Rate Variance”. Not 100% sure if that’s the best option, definitely open to feedback.

3

That should be fine. The fact you sold it for less is the loss, not the actual sale, which is your income.

The end result would be a loss.

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