Sale of fixed assets

subha r (Student CA IPC / IPCC) (11 Points)

28 January 2021

any profit on sale of fixed assets transferred to P&L A/c (or) capital reserve ?

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 28 January 2021

It should be transferred to p/l a/c automatically it will be added to capital reserve by transferring the profit to reserve

subha r (Student CA IPC / IPCC) (11 Points)
Replied 28 January 2021

Means it is included in calculating net profit.

sabyasachi mukherjee (27574 Points)
Replied 28 January 2021

There is a seperate account called capital reserve.

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 28 January 2021

Yes it can be included

satish (teaching) (2046 Points)
Replied 31 January 2021

It is credited to profit & loss account only.
it is an extraordinary item, so it is be disclosed in profit & loss account separately.

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