Liquidation of companies

Accountancy

How to treat the profit and loss a/c balance while preparing statement of affairs and deficiency statement

Sai Theja

CA Inter

★ 3K+

23-May-22 14:54

481

Answers (5)

While doing statement of affairs it is not useful. But to prepare deficiency statement (List-H) we have to record it. If it is p&l debit balance should record under contribution to increase defieciency. If it has credit balance should record under contribution to decrease deficiency

Likhitha Sivani

CA Final

★ 14K+

23-May-22 16:55

Likhitha Sivani

What about statement of affairs

Priyanka R

CA Final

★ 20K+

23-May-22 17:07

Priyanka R

What about statement of affairs

In that we won't use please check format

Likhitha Sivani

CA Final

★ 14K+

23-May-22 17:11

Likhitha Sivani

In that we won't use please check format

Ok thank you

Priyanka R

CA Final

★ 20K+

23-May-22 17:11

But to prepare deficiency statement (List-H) we have to record it. If it is P&L debit balance should record under contribution to increase deficiency. If it has credit balance should record under contribution to decrease deficiency. If it is Statement of affairs, the same wouldn't be used.

shalu Muthukumar

CA Final

★ 1K+

23-May-22 18:55