Arun Phaneendra (Articles Student) (32 Points)
20 August 2009Dear frnds
plz clrfy my doubt
the accounting treatment of long term capital loss that appears in TB.
is it considered in BS or p&l. plz convey me wtth decriptive ans.
Waiting for ans..........
Vidya
(Student)
(789 Points)
Replied 07 September 2009
How was this created in the books? Is it a simple loss on sale of an asset or something else? If it is loss on sale of an asset previously used for business, debit it to P and L account.
Pulkit Agarwal
(CA. Final)
(455 Points)
Replied 08 September 2009
| Originally posted by :Arun Phaneendra | ||
| " | Dear frnds plz clrfy my doubt the accounting treatment of long term capital loss that appears in TB. is it considered in BS or p&l. plz convey me wtth decriptive ans. Waiting for ans.......... |
" |
It seems that the loss you are talking about is the loss upon the sale of a fixed asset.
From accounting point of view, the loss should be debited to p&L A/c. This will not be though allowable as a business head deduction under The Income tax act. It will considered seperately in the head Capital Gain
There is no question of conidering it into Balance sheet
GAURAV BEHL
(CA-FINAL )
(228 Points)
Replied 06 November 2009
dear arun
it looks like u have treated it as an asset for the carry forward purpose. in that case whenever u set off this loss against any capital gain, pass the following journal entry:
capital gain a/c ...... dr.(capital gain income)
to capital loss a/c(capital loss cariied forward)
and your balance will disappear.
Ashish
(Article)
(30 Points)
Replied 20 May 2010
It needs to be written off to the extent free reserves and profits are available with the organisation.
It can only be carried forward to the balance sheet (Asset side as Loss) provided there are not sufficient book profits or reserves available to absorb the same.
susant khuntia
(accountant)
(21 Points)
Replied 28 May 2010
sir ,
i am purchase some share & sale after six month so how i can pass entry in tally & how i can pass short term capital gain/loss entry in tally
JITENDRA KUMAR DHINGRA
(Executive)
(93 Points)
Replied 28 May 2010
CAclubindia
