car using for office perpose has been sold on 10.03.2016. opening balance of car was 270000 and sold it for 250000.should the company show the balance in loss on sale of car OR first clime depreciation on car and then book the excess receipt as profit on sale of car. company having a single car.
In case of depreciable asset:
The existing WDV value of asset is reduced by the sale proceeds and then only depreciation benefit is to be availed.In your case since no assets exists in the block no depreciation would be eligible, and you have to consider as a short term loss
Thank you sir.
CAclubindia
