Accounting treatment for proprietorship business
Querist : Anonymous
Can the below mentioned treatment in Balance Sheet is sound for any Proprietorship Business (No tax audit):
Liabilities:
Opening Capital 20,00,000
Add: Current Year profit: 4,00,000
Less: Loss on Sale of Part Business: (3,00,000)
Less: Loss on Sale of Fixed Assets : (20,000)
Less: Drawings : (10,00,000)
__________ 10,80,000
Loss on Sale of Part Business : Assessee has sold his major loss making unit.
Loss of sale of FA : Assessee has also sold some of its depreciable assets at a loss (i.e below its wdv)
Now i need your advice on this, can we show these losses in balance sheet like this ?
As if we treat these losses to be in P & L, the same should ultimately affect the capital, with a Current year net loss.
Thanks & Regards,
Querist : Anonymous
Querist : Anonymous
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