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revenue or capital loss

Others 585 views 2 replies

hello sir,

 

Q1. if a machine which has become obosolete is sold at 6 year while its estimated useful life is 8 year. why it is treated as revenue loss???

 

q2.  if a machine which purchased yday and was sold today at a price less than its purchase price.??? will it be revenue or capital loss ???

q3. If a piece of land belonging to the factory is sold at profit. will it be treated as capital profit or revenue profit.

 

please state the reason for the above mentioned question

 

Replies (2)

In financial accounts, profit or loss on sale of any asset of the organisation is treated as revenue. It is in Income tax where we categorize them into capital loss and revenue loss. There is no way in financial accounts to account capital and revenue losses separately. Hope i am clear. Any more doubts???

i agree with saranraj

 

thank you


shankarchitupolu


CCI Pro

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