Preparation of FS

Accountancy

Why 20000 is deducted If it is transferred to GR then it should be increased right?

Sugam SM

CA Final

★ 9K+

03-Sep-22 21:46

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Sugam SM

CA Final

★ 9K+

04-Sep-22 16:58

they transferred 20000 from p&l a/c to general reserve a/c, so they added 20000 as transfer to general reserve a/c and deducted 20000 from p&l a/c. the entry will be profit and loss a/c dr to general reserve a/c

Vamsi Chowdary

CA Final

★ 13K+

04-Sep-22 18:25

Transfer to GR means transferred from P&L to GR. So reduce P&L and increase GR.

CA Suraj Lakhotia

Admin

06-Sep-22 20:05