Why all losses are not included in accounting
This query is : Resolved
10 January 2023
why all losses are not included in accounting like when we keep cash in our hand we are losing an opportunity to invest it somewhere and earn interest from there etc
10 January 2023
You loose an opportunity to earn, it doesn't mean you loose your cash amount by any means.
10 January 2023
does it mean that loss is when we loss something we actually have .but sir in normal scenario is it a loss not in accounting terms.
10 January 2023
Yes, loss is loss of capital amount.
Secondly, it is termed as operating capital, required in normal terms. Excess amount is deposited in bank and invested.
Secondly, it is termed as operating capital, required in normal terms. Excess amount is deposited in bank and invested.
10 January 2023
sir one more doubt when goods are sold on credit say 90 days the seller is only getting money on or after 90 days is it a loss to him. but such types of losses are not covered in accounting. is it actually a loss in normal perspective but its not covered ion accounting
10 January 2023
As per accounting terms it is not loss, as said before.
But in actual practise, seller adds up interest of these credit days in its rate.
You may come to know in practical fields, that the rates of same goods are different if paid by cash and by credit of different days...
But in actual practise, seller adds up interest of these credit days in its rate.
You may come to know in practical fields, that the rates of same goods are different if paid by cash and by credit of different days...
10 January 2023
is this same concept applied for the cash in hand sir. in normal case if we keep this with our hands we may perceive it as a loss but in accounting perspective it will be a loss only if we actually lose such money
10 January 2023
Yes, loss of any interest is not the actual loss...
It will be loss only if it is lost due to theft or by any natural calmities etc...
It will be loss only if it is lost due to theft or by any natural calmities etc...
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
- Tax on Deemed Capital Gain
- CLOSING STOCK QUERY
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- Grand in aid
- IT returns for fresh job holders
- F&O reporting in ITR
- Difff in ais receipts and gst turnover
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Gst on travel by air for business purposes
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
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
