Reserves and Surplus

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374 Points Posted on 03 April 2020
Sold machinery whose cost is Rs.10000 for Rs.9000 whose book value Is Rs.8000 and 1000 be transferred to capital Reserve.
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On 03 April 2020 at 16:57 Report
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This discussion clarifies the accounting treatment for selling machinery at a loss. When machinery costing Rs. 10,000 and with a book value of Rs. 8,000 is sold for Rs. 9,000, the Rs. 1,000 difference is transferred to a Capital Reserve. The initial Rs. 1,000 profit is recognised in the Profit & Loss account before being moved to the Reserves and Surplus section after account finalisation.

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"Do the Right Thing...!!!"
128157 Points Posted on 03 April 2020
1k to account in PandL account as Ledger - Profit on Machinery



( Are You Company or other than company..?)
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On 03 April 2020 at 17:32
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374 Points Posted on 03 April 2020
Company
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On 03 April 2020 at 18:36
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"Do the Right Thing...!!!"
128157 Points Posted on 03 April 2020
Of Pvt Ltd company then after finalize the account (PandL) the amount transferred to R&S head...
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On 03 April 2020 at 18:53
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374 Points Posted on 03 April 2020
Which reserve is it capital and can u say the journal entry
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On 03 April 2020 at 22:34
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Profession
28261 Points Posted on 04 April 2020
Its capital reserve.
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On 04 April 2020 at 08:33
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374 Points Posted on 04 April 2020
Will they first pass profit entry then will they pass it to capital reserve.
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On 04 April 2020 at 13:21
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teaching
2046 Points Posted on 04 April 2020
Rs. 1000 credited to profit and loss account
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On 04 April 2020 at 17:19
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"Do the Right Thing...!!!"
128157 Points Posted on 04 April 2020
Yes... I agreed to Mr Satish.
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On 04 April 2020 at 17:22

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