Easy Office
LCI Learning

Loss on sale of fixed assets

This query is : Resolved 

30 March 2017 A partnership firm making a loss of 10 lacs during the year and that is because it transferred its assets to a partner at scrape value i.e. loss because of loss on sale of assets.
But now partners do not want to show loss in P&L a/c of firm,
And they want to transfer such loss in their respective Capital accounts and not in P&L
So can they do so ??

30 March 2017 Yes they can do such adjustment.

30 March 2017 Ok but if only one partner is buying the asset of firm , then loss will be transfer in only that partner's capital a/c or in all partner's a/c ??




30 March 2017 As agreed by partners mutually.

30 March 2017 ok , but there is no problem to department if you are transferring your loss in partner capital a/c and not showing it in P&L and making your P&L as no profit no loss i.e. at NIL

30 March 2017 Yes no problem to the department as taxable income is not affected.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries