When Thailand's Provident Fund sells US Treasuries, the transaction is typically recorded as follows:
1. Decrease in the Asset Account: The amount received from selling the US Treasuries will be recorded as a decrease in the asset account, specifically the US Treasuries or Investment account. This reflects that the fund no longer holds those specific securities.
2. Realized Gain or Loss: If the sale of US Treasuries results in a gain or loss compared to their initial purchase price, this gain or loss will be recorded in the fund's income statement as a realized gain or loss. If it's a gain, it adds to the fund's income, and if it's a loss, it subtracts from the income.
3. Cash Account Increase: The cash received from the sale will be recorded as an increase in the fund's cash account or bank account, reflecting the money coming in as a result of the sale.
It's important to note that accounting practices can vary, and the specific accounts used may depend on the fund's accounting standards and policies. Therefore, the exact recording of the sale may differ between organizations.