Problem from AS-10

983 views 3 replies

On 1-4-2008 B Ltd had sold some of its fixed assets for Rs.200 lakhs (written down value Rs.500 lakhs), these assets were revalued earlier.  As on 1-4-2008 the revaluation reserve corresponding to these assets stood at Rs.400 lakhs.  The profit on sale of property Rs.400 lakhs shown in the profit and loss statement represented the transfer of this amount.  Loss on sale of asset was included in the cost of goods sold.  Comment

 

I am not able to understand this problem.  Please help me to understand this question and solve it for me.

 

Thanks in advance

Replies (3)

 THIS QUESTION IS ASKING YOU TO DO TREATMENT AFTER SALE OF ASSET.

 

THE TREATMENT WILL BE AS UNDER:

THJE LOSS WILL BE WRITTN OFF FROM REVALUATION RESERVE INSTEAD OF TRANSFERRING TO P&L A/C.AND THE BALANCE REMAINING IN THE REVALUATION RESERVE IS TRANSFERRED TO GENERAL RESERVE.

 

HOPE YOU FIND ME CLEAR.

 

REGARDS,

 

CA RITESH KOTHARI

He is right.

bingo......


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details