10 March 2015
Hi, In our company we buy some batteries,that book as expenses, now we buy new batteries in replacement of old,and we get some value of old batteries.
my query is that what is the entry of that amt i should pass. Ex. Old Batteries value is 114000 New batteries value 170000 old batteries taken at value 30000
12 March 2015
If Batteries are considered as Capital items, then the entry will be as under:- (1)Party A/c Dr. 30,000 To Sale of Assets A/c 25,000 CST/ VAT 5,000 (For booking the transaction) (2)Bank A/c Dr. 30,000 To Party A/c 30,000 (For receipt of payment)
If Batteries are considered as Revenue items,then the entry will be as under:- (1) Bank A/c Dr. 30,000 To Sundry Receipts 30,000 (For receipt of payment)
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