If there is profit or loss during a financial year than how do we transfer such profit/loss to the capital of proprietor's a/c? It should be posted on which date?
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Profit transfer to proprietor's capital a/c
Replies (1)
The Profit / Loss during the Financial Year should be transferred to the Capital A/c of the Propreitor on the Last day of the Financial Year (ie. on 31/03/2011).
Following Entry to be passed:-
In case of Profit
Profit & Loss A/c Dr. XX
To Proprietor's Capital A/c XX
(being Profit Transferred)
In case of Loss
Proprietor's Capital A/c Dr. XX
To Profit & Loss A/c XX
(Being Loss transferred to Capital A/c)
Regards,
Devendra Kulkani
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