Accounting Treatment of loss- sole prop to Pvt ltd co
This query is : Resolved
12 February 2020
When a proprietorship concern is converted to Pvt ltd company, what will be the accounting treatment of carried forward loss of sole proprietorship concern?
Will it be shown in P&L statement as a loss or Balance sheet as a negative capital Reserve?
Will it be shown in P&L statement as a loss or Balance sheet as a negative capital Reserve?
23 May 2020
In case of a reorganisation of a business whereby a proprietorship or a partnership firm is converted into a company, the accumulated business loss and the unabsorbed depreciation of the predecessor firm can be carried forward by the company.
It will be shown in Financial Statement (Balance Sheet)
It will be shown in Financial Statement (Balance Sheet)
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