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financeman
May 25, 2009, 07:39 AM
I wrote the surplus and loss made in a year to an account that stands like a capital account in my organisation,afterwards the said loss was not carried forward in the balance as retained,but my boss wants me to reflect that same loss even while the treatment appaers like a write off.is this a normal practice to retain a loss that has been debited to a capital account thereby reducing the said capital.

morgaine300
May 25, 2009, 07:38 PM
I'm not entirely sure what it is you're saying - it's a bit confusing.

But if you're just saying you had a net loss for the year, then it's debited to capital, which reduces it. Once it's put in there, it stays. The net income or net loss of the company increases or decreases the net worth and it can't just disappear. Net worth carries through. Does your net worth change from Dec 31 to Jan 1? Neither does the company's.