Profit me cost of car 40000 add kyun kiya

Garveeshh · 22 Jul 2025

Purchasing an asset is not an expense, while calculating Goodwill we take profit, and profit is evaluating after detecting all the expenses . But since we debit purchase of an asset which was not actually an expense we add back and the depreciation on the asset is an expense because it is written down in p&l account so we subtract the depreciation. And for better understanding use can go for CA Parag class 12th goodwill chapter