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Treatment of goodwill in partnership accounts
Accountancy
This is illustration 11 sir. Can u explain (a) adjustment point
Answers (12)
ruchi lahoti
Adjust the profits of 2018-19 by adding back the cost of machinery and reducing the depreciation on such machinery. By charging it as revenue, our profit was understated. By adding back we can arrive at the correct profit.
Mam, in adjustment they have already given that machine was depreciated. Then y we need to again reduce the profit ?
Thread Starter
siva chaitanyabut purchase of machine is added as revenue it increases profit but purchase of machine is capital expenditure so for rectifying it we should decrease profit know?
Bro can you tell the page number of that illustration?
Thread Starter
siva chaitanyabut purchase of machine is added as revenue it increases profit but purchase of machine is capital expenditure so for rectifying it we should decrease profit know?
Nhi bro dekho hmne isey revenue expenditure mana h yani p&l reduce hua h na to profit yani kam h so we will add this to ascertain the correct profit
ruchi lahoti
Adjust the profits of 2018-19 by adding back the cost of machinery and reducing the depreciation on such machinery. By charging it as revenue, our profit was understated. By adding back we can arrive at the correct profit.
Mam but by charging it as revenue, profit will increase know mam
Sushma Verma
Nhi bro dekho hmne isey revenue expenditure mana h yani p&l reduce hua h na to profit yani kam h so we will add this to ascertain the correct profit
Ok we treated as revenue expenditure ok thanks ð???
Meda Jeevansai
Plz reply sir/mam
This depreciation is for the machine we had charged as revenue instead of capital expenditure
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