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Profit prior incorporation

403 views 3 replies
when there is a pre profit, amount will be transferred to capital reserve

if there is a pre loss, then will transfer to Goodwill?

what journal entries will we need to post at the time of transferring to the balance sheet ?
Replies (3)
Same to transfer into Reserve and Surplus...
If pre- incorporation profit entry is
profit and loss a/c. Dr.
To capital reserve


if loss entry is
goodwill a/c. Dr.
To profit and loss a/c
Great Satish..thank you !!


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