Depreciation

This query is : Resolved

Rakesh Sharma (Querist)
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28 November 2014 A proprietor concern having the following fixed assets block as on 01-04-2014 :-

Plant & Machinery- 11,40,132.00 (15%)
Building - 4,65,904.00 (10%)
Car - 99,610.00 (15%)
Telephone - 2,645.00 (15%)

Today, we sold car for Rs. 1,25,000.00 & Telephone for Rs. 2,000.00.

Please advise me entries & adjustments to be made.

Thanks

Rupesh Jain

Rupesh Jain (Expert)
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28 November 2014 IN CAR 99610-125000 = YOU HAVE TO PAY SHORT TERM CAPITLA GAINS IF YOU NOT BUT NEW CAR.

AND ON TELELPHONE ITS SHORT TERM CAPITLA LOSS 2645-2000= IF YOU NOT BUY NEW TELEPHONE.

Rakesh Sharma

Rakesh Sharma (Querist)
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28 November 2014 Rupesh Sir, Can we adjust this shortage in 15% block of Plant & Machinery. I have seen this type of adjustment in Audited Balance Sheet.

Rupesh Jain

Rupesh Jain (Expert)
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29 November 2014 you have bal. assests in block after selling this then you reduce the selling amount from the block. and no tax will be paid by you.

due to as per income tax

O/B+ ADDITION DURING THE YEAR- SELLING DURING THE YEAR= BAL

DEPRECUATION @15% ON BAL.

IF ASSETS IF NOT IN BLOCK THEN GAIN/LOSS WILL BE CONSIDER.