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?
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)
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