Problem from AS-10

988 views 3 replies

On 1-4-2008 B Ltd had sold some of its fixed assets for Rs.200 lakhs (written down value Rs.500 lakhs), these assets were revalued earlier.  As on 1-4-2008 the revaluation reserve corresponding to these assets stood at Rs.400 lakhs.  The profit on sale of property Rs.400 lakhs shown in the profit and loss statement represented the transfer of this amount.  Loss on sale of asset was included in the cost of goods sold.  Comment

 

I am not able to understand this problem.  Please help me to understand this question and solve it for me.

 

Thanks in advance

Replies (3)

 THIS QUESTION IS ASKING YOU TO DO TREATMENT AFTER SALE OF ASSET.

 

THE TREATMENT WILL BE AS UNDER:

THJE LOSS WILL BE WRITTN OFF FROM REVALUATION RESERVE INSTEAD OF TRANSFERRING TO P&L A/C.AND THE BALANCE REMAINING IN THE REVALUATION RESERVE IS TRANSFERRED TO GENERAL RESERVE.

 

HOPE YOU FIND ME CLEAR.

 

REGARDS,

 

CA RITESH KOTHARI

He is right.

bingo......

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details