Conversion of capital asset into stock in trade

Hi,

Conversion of asset to stock amounts to capital gain.

Capital gain will be in the year in which such stock is sold.

Computation of cap gain will be from cost of acquisition to the date of transfer of asset into stock.

Business income will be computed as sale consideration of stock less value considered for transfer to stock from capital asset.

For any further query PM or mail us.

anubhavjain @ ajhco.in

AJH & CO.

Chartered Accountants

hey.. 

what will be accounting entry in books for such converstion??