Accounts
This query is : Resolved
22 August 2011
what should be the accounting treatment for capital profit on sale of an asset and why
22 August 2011
Bannk a/c or Party a/c Dr
To Asset a/c
To Gain on Sale of Asset a/c
And gain on sale of asset is not a capital profit we have to take it P&L a/c.
To Asset a/c
To Gain on Sale of Asset a/c
And gain on sale of asset is not a capital profit we have to take it P&L a/c.
22 August 2011
yes. it need to be shown in p&l only. not capital profit
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22 August 2011
I agree with the experts
22 August 2011
According to AS-10 any profit/loss arises by sell or disposal of fixed assets will transfer to p&l a/c.
22 August 2011
dear sir,i am talking about capital profit that is profit above the orignal cost..wouldnt it be better to transfer that to capital reserve instead of passing it through the p and l
24 August 2011
yes. Fixed asset or capital assets sale value exceeds the value of actual value, need to be accounted in profit & loss a/c only
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