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Profit or loss pre and post incorporation

Accountancy

Sir why the pre- incorporation profit is taken to capital reserve and loss is taken to Goodwill ? What is the logic or reason behind it?

GOKULALAKSHMI PANNEER

GOKULALAKSHMI PANNEER

CA Final

★ 2K+

10-Sep-23 16:53

254

Answers (1)

Loss means net assets are lower and we pid higher. Hence goodwill. You will understand in Amalgamation

CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

10-Sep-23 17:05

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