In farming business, A cow gave birth to calf. What jounal entry would the businessman pass in his book? Please answer
2 Replies
StarShines
(Student CA Final )
(35 Points)
Replied 03 September 2012
| Originally posted by : kamlesh | ||
 |
In farming business, A cow gave birth to calf. What jounal entry would the businessman pass in his book? Please answer |
 |
Hi Kamlesh !
There would be no journal entry to record this. Also note that as per IAS 41, only the cost of rearing animals can be recognised in the financial statements. A cow giving brith to a baby calf does not invlove any exchange or outflow of resources, which can be identified as a transaction. Hence, this cannot be measured and would not be recorded in accounts.
Hope that helps.
Indran Agarwal
(2 Points)
Replied 30 August 2019
The entry will be 2 entries
1st will be
Live stock A/c dr.
To P/L suspense A/c
2nd will be
P/L suspense A/c dr.
To capital A/c
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