Internal reconstruction query
Meena Gupta (Article) (83 Points)
09 June 2014
Reconstruction a/c in internal construction debit balance hota hai ya Credit balance.....????
Meena Gupta (Article) (83 Points)
09 June 2014
PSPSPS
(Practicing)
(1344 Points)
Replied 09 June 2014
No Hard & Fast Rule or situation that it should be only Debit or only Credit, It can be either ways.
It depends on whetehr you are getting surplus / Benifit on Your Reconstruction Activity ( i.e Entire deficit being wiped Off ) or still in Deficit ( Just Reduction of Deficit & Left with something ) You have to Trf the Dr Bal of P & L Account in B/sheet Given to Dr of Reconstruction Account
PSPSPS
(Practicing)
(1344 Points)
Replied 09 June 2014
No Hard & Fast Rule or situation that it should be only Debit or only Credit, It can be either ways.
It depends on whetehr you are getting surplus / Benifit on Your Reconstruction Activity ( i.e Entire deficit being wiped Off ) or still in Deficit ( Just Reduction of Deficit & Left with something ) You have to Trf the Dr Bal of P & L Account in B/sheet Given to Dr of Reconstruction Account
Meena Gupta
(Article)
(83 Points)
Replied 09 June 2014
Meena Gupta
(Article)
(83 Points)
Replied 09 June 2014
PSPSPS
(Practicing)
(1344 Points)
Replied 09 June 2014
No Hard & Fast Rule or situation that it should be only Debit or only Credit, It can be either ways.
It depends on whetehr you are getting surplus / Benifit on Your Reconstruction Activity ( i.e Entire deficit being wiped Off ) or still in Deficit ( Just Reduction of Deficit & Left with something ) You have to Trf the Dr Bal of P & L Account in B/sheet Given to Dr of Reconstruction Account
PSPSPS
(Practicing)
(1344 Points)
Replied 09 June 2014
Reduce it from Operating Profit & Take Entire Reciepts at Actuals from Sale of FA to Cash from Investing Activities
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