what will be the treatment for transfror company on profit or loss arising from sale of division.
praveen sharma sir goes for p/l, module says cpaital reserve ?
1 Replies
Phalgun
(Audit Manager)
(327 Points)
Replied 20 October 2011
Profit & loss a/c records items occuring on the normal course of business.
Sale of division is not a regular activity. It is an extraordinary activity. It has to be taken to p&l as per AS-5 by showing it separately so that its impact on current year profit or loss can be perceived.
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