Accounting

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This discussion explains how to handle accounting entries for losses incurred in a previous financial year within a partnership firm. The net loss can be carried forward for up to eight years and offset against future profits, allowing for income tax benefits. Proper journal entries involve transferring the loss to the partners' capital or current accounts, as stipulated by the partnership deed. Filing your Income Tax Return (ITR) before the due date is crucial to claim these adjustments.

sagar

sagar (Querist)

04 January 2021 Dear sir/madam
How to pass entry for a loss in previous year to current f. y. year in a partnership firm

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

07 January 2021 Loss to be transfered partners capital A/s or Current a/ c as per deed

sagar

sagar (Querist)

08 January 2021 Dear sir
How to settle previous year loss in current financial year as i want to take benifit from income tax
And what are the entry

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 October 2021 The net loss of the firm gets carried forward upto next 8 years, so whenever there is profit you can claim the loss to be adjusted. You need to file ITR before due date.

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