Accounting entry

Save Share

This query is : Resolved

RAKESH KUMAR BEHERA (Querist)

10 September 2019 My Client Have Personal Capital Assets(Gold/Silver)
He is Now Starting a Business (Jewelry Shop)-Proprietorship

He Want to Transferred Personal Gold to Business(Converting Capital Assets to Stock in Trade)

How to pass Entry in Tally
What is The Accounting For This ??
Please Help

Ruchi

Ruchi (Expert)

11 September 2019 Stock of gold/ silver / jewellery a/ c Dr
To Capital a/c.
Here you must show the stock of each thing separately at a fair valuation on the date of transfer.

RAKESH KUMAR BEHERA

RAKESH KUMAR BEHERA (Querist)

11 September 2019 What Effect Will Come in Profit & Loss Account

Ruchi

Ruchi (Expert)

11 September 2019 You dont need to pass any separate entry for P&L a/ c . It will automatically be added in your stock like it happens in the case of purchases. Whenever you sell the stock, do entries as you do normally in any other case of sale.

Message likes : 1 times

RAKESH KUMAR BEHERA

RAKESH KUMAR BEHERA (Querist)

13 September 2019 then My Closing Stock will Increase , Then My GP will be Increased of same amount ?
Then Profit Will High ?

RAKESH KUMAR BEHERA

RAKESH KUMAR BEHERA (Querist)

13 September 2019 then My Closing Stock will Increase , Then My GP will be Increased of same amount ?
Then Profit Will High ?

Ruchi

Ruchi (Expert)

13 September 2019 Let me make a correction here... The journal entry should be Purchase a/c Dr
To Capital a/c
After this , you can include the introduced stock in Closing Stock. Net effect on profits Nil. And follow normal accounting when sold.

RAKESH KUMAR BEHERA

RAKESH KUMAR BEHERA (Querist)

13 September 2019 Thank You So Much, I appreciate You Response

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