If there is profit or loss during a financial year than how do we transfer such profit/loss to the capital of proprietor's a/c? It should be posted on which date?
Devendra
(Chartered Accountant)
(4775 Points)
Replied 28 November 2011
The Profit / Loss during the Financial Year should be transferred to the Capital A/c of the Propreitor on the Last day of the Financial Year (ie. on 31/03/2011).
Following Entry to be passed:-
In case of Profit
Profit & Loss A/c Dr. XX
To Proprietor's Capital A/c XX
(being Profit Transferred)
In case of Loss
Proprietor's Capital A/c Dr. XX
To Profit & Loss A/c XX
(Being Loss transferred to Capital A/c)
Regards,
Devendra Kulkani
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
