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
Message likes :
1 times
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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Taxable or Tax exempt
- ADVANCE PAYMENT OF ADVOCATE
- TDS Deducted AY-2013-14 Not Reflected in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- Eway bill not cancelled within 24 hous what can be due
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- Eway bill generation from place other than registeted
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
