Accounting entry for disclose income/stock
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 December 2009
hi, i have a proprietor firm and it has disclose stock in the year so plzzz give me solution for this case as soon as possible.
30 December 2009
Debit stock and credit other income.
30 December 2009
Stock A/c....... Dr
To Liability
To Liability
30 December 2009
If it is a declared stock it will be treated as an income. Liability against what?
30 December 2009
yes, if you have stock A/c at the end of the f.y then it will be in your P/L A/c in Income side.Stock A/c is also sharing part of the Profit.
30 December 2009
Pass the following more entry with the value of stock further disclosed :
Stock Declared a/c Dr
To Profit & Loss A/c
--------------------
Since the excess stock declared will show more net profit; hence it will be automatically included in capital account at the end of the year.
Stock Declared a/c Dr
To Profit & Loss A/c
--------------------
Since the excess stock declared will show more net profit; hence it will be automatically included in capital account at the end of the year.
30 December 2009
Pass the following more entry with the value of stock further disclosed :
Stock Declared a/c Dr
To Profit & Loss A/c
--------------------
Since the excess stock declared will show more net profit; hence it will be automatically included in capital account at the end of the year.
Stock Declared a/c Dr
To Profit & Loss A/c
--------------------
Since the excess stock declared will show more net profit; hence it will be automatically included in capital account at the end of the year.
30 December 2009
Stock is declared only in the case of surveys where the prop. surrender stock etc. It is income of the firm or prop. and also an addition to the capital. so debit stock account and credit capital account. profit on sale of such stock will be taxable again as a normal profit as he regularly earning in his business.
30 December 2009
Dear Tilakraj,
Thanks for discussion.
Please show all the accounting entires togetherwith effect thereon in profit and loss account.
The profit should increase with the value of stock declared.
In the method suggested by you; it will give double effect in capital account.
Two addition of a single income will not be possible as written by you -
"It is income of the firm or prop. and also an addition to the capital."
Thanks for discussion.
Please show all the accounting entires togetherwith effect thereon in profit and loss account.
The profit should increase with the value of stock declared.
In the method suggested by you; it will give double effect in capital account.
Two addition of a single income will not be possible as written by you -
"It is income of the firm or prop. and also an addition to the capital."
30 December 2009
I think Mr. Rakhecha you misunderstood my point. How can be addition made two times with a single entry.
30 December 2009
Dr.Stock
Cr.Profit & Loss A/c
Cr.Profit & Loss A/c
30 December 2009
stock a/c Dr.
to p/l a/c
to p/l a/c
05 January 2010
Its getting crazy out here.........
Godness gracious. A simple issue is blown out of context.
With due respects to all in my opinion only CA. Tilak Raj has got the correct answer. Entry Should be Stock A/c and credit Capital A/c. That is the only solution.
At theend of the year closing stock will automaticaly show increased value after taking into consideration the stock declared. Credit effect has to be given to Capital A/c. only.
How on earth can we give effect to Stock a/c. dr and cr P/L?????
Godness gracious. A simple issue is blown out of context.
With due respects to all in my opinion only CA. Tilak Raj has got the correct answer. Entry Should be Stock A/c and credit Capital A/c. That is the only solution.
At theend of the year closing stock will automaticaly show increased value after taking into consideration the stock declared. Credit effect has to be given to Capital A/c. only.
How on earth can we give effect to Stock a/c. dr and cr P/L?????
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
