14 October 2013
what will be journal entry regarding profit on sale of asses in invidiual or in companies . whether it will transfer in profit&loss account or capital reserve in both case
15 October 2013
thanx for suggestion , but definition of capital reserve include profit on sale assets.and also in income tax act profit on sale of asset less from net profit, please suggest.
Then Sale Proceed - WDV = Short term capital gain 20000-5000 = 15000
However, in case of block of assets, Any asset of the block sold in excess of the WDV of the block then it will be a short term capital gain,The remaining block will be valued as NIL...
If it sold less than WDV it will be a short term capital loss...
Note:Any asset sold more than its Actual cost then it will be termed as Business Gain..
15 October 2013
Agreed and the definition in capital reserves means this kind of income can be transferred to capital reserve and this is not compulsory an option given to entities.
15 October 2013
Because investments only long term in nature are capital in nature so all items of capital in nature can be dealt with captial reserve as the name itself suggest.
CAclubindia
