Car with a wdv of Rs 1 lakh is sold for Rs 75,000. The block of asset continues to exist and hence there will be no capital gain/loss. However , how will i account the Rs 25,000/- loss in books of accounts. Debit to P&L or Account it as drawings.
13 July 2018
Debit to p & l. For income tax calculation add the said amount to the profit shown in p & l. In other words disallow the loss debited in p & l for income tax purposes.
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