Loss on sale of asset

I am a practicing Chartered accountant. One of my client is in medical profession having Block of Asset with depreciation rate @ 15 % amounting to Rs. 5,00,000/- (WDV as on 01/04/2015)) including one car with WDV  of Rs. 4,50,000/- and medical equipments of Rs. 50,000/- . He sold car during the year for Rs. 2,50,000/-. Please suggest me the treatment for loss on sale of car.

                The Assessee  do not want to Write-off medical equipments completely and want that loss on sale of car to be claimed as expenditure. Please guide.

Replies (1)

Normally an a/c viz., Profit/Loss on Sales of Assets will be opened and the net result will be shown in P&L A/c. The asset will be removed from Assets ledger since sold out & the realization either profit or loss (after considering Depreciation up to the date of sale or by the latest Depreciation method) will be accounted accordingly.

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