Hiiiii
I want to know if a business man surrenderd stock in Income Tax Investigation then how we can enter this surrenderd stock in the books?
I have credited to P&L appropriation a/c but i dont know which a/c would be Debited because this is not a purchase .
so kindly give me the right treatment on this problem as earliest as possible
thanking you
Mayank Rastogi
09808649992
0121-2534777
This can be done by making a notional entry:
Purchases A/C Dr (only the amount Qty will be NIL)..................xxx
To P/L Appropriation A/C.................................................................xxx
This will increase your stock without corresponding increase in Quantity.
This can be done by making a notional entry:
Purchases A/C Dr (only the amount Qty will be NIL)..................xxx
To P/L Appropriation A/C.................................................................xxx
This will increase your stock without corresponding increase in Quantity.
since tax on surrendered stock has been paid it is better to add in closing stock in trading a/c to match the profit declared and tax paid.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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