08 January 2014
You have directly not incurred any cost in purchasing a calf. Still, its day to day feeding has costed to your business and the same was charged to profit and loss account. So, you are selling the "calf" just like a product on which you have incurred only revenue expenditure. So, in my view, you have to credit the amount so received to P&L A/c. . There may be many other views on this matter. Please wait for the expert's view.
CAclubindia
