A/c treatment of longterm capital loss that appears in TB

How was this created in the books? Is it a simple loss on sale of an asset or something else? If it is loss on sale of an asset previously used for business, debit it to P and L account.

It seems that the loss you are talking about is the loss upon the sale of a fixed asset.

From accounting point of view, the loss should be debited to p&L A/c. This will not be though allowable as a business head deduction under The Income tax act. It will considered seperately in the head Capital Gain

There is no question of conidering it into Balance sheet

dear arun

it looks like u have treated it as an asset for the carry forward purpose. in that case whenever u set off this loss against any capital gain, pass the following journal entry:

capital gain a/c ...... dr.(capital gain income)

  to capital loss a/c(capital loss cariied forward)

and your balance will disappear.

It needs to be written off to the extent free reserves and profits are available with the organisation.

It can only be carried forward to the balance sheet (Asset side as Loss) provided there are not sufficient book profits or reserves available to absorb the same.
 

sir ,

i am purchase some share & sale after six month so how i can pass entry in tally & how i can pass short term capital gain/loss entry in tally