Easy Office
LCI Learning

treatment of profit on sale of fixed asset

This query is : Resolved 

22 August 2017 journal entry & treatment of profit on sale of fixed asset

22 August 2017 Cash/Bank A/c Dr. xxxx
To Fixed Assets A/c xxxx
To Profit&Loss A/c xxxx

22 August 2017 Eg. Cost of fixed asset - Rs. 10 lakhs, accumulated depreciation - Rs. 4 lakhs, Sale price - Rs. 8 lakhs

1. Sale of Fixed Asset A/c Dr 10 lakhs
To Fixed Assets

2. Accumulated Depreciation Dr 4 lakhs
To Sale of Fixed Assets

3. Bank/ Cash/ Party Dr 8 lakhs
To Sale of Fixed Assets

The balance amount is the profit. Additionally you can file the below entry

Sale of Fixed Assets Dr
To Profit on Sale of Fixed Assets






You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries