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fixed asset sale

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 June 2010 When any Fixed asset is sold then how to calculat gain/loss as per Comapanies Act? And what is the accounting treatment as per Companies Act?

If there is gain then it is required to transefer to Profit and Loss A/c or Capital Reserve?

Thankyou.
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DEEPIKA GOEL

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DEEPIKA GOEL (Expert)
01 June 2010 Gain or loss on sale of fixed assets would be calculated by following procedure.

Amount realised on sale of fixed asset - WDV of fixed asset

If the above amount is positive, it would be profit or gain. Or if its negative, it would be loss.

Gain or loss on sale of fixed asset should be transferred to profit or loss account.
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CMA. CS. Sanjay Gupta

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CMA. CS. Sanjay Gupta (Expert)
01 June 2010 AGREE WITH DEEPIKA JI.
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Kishen K Warrier

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Kishen K Warrier (Expert)
02 June 2010 agree.

Depreciation to be calculated till the day before the date of sale and WDV obtained.

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