Accounting Treatment
This query is : Resolved
12 November 2010
If in a business entity, the WDV of the Machinery is Rs. 250000 and in the last month the machinery one of the machinery in the block worth Rs. 25000 is damaged and is of no use, then what is the treatment to be made in such situation?
Regards,
Devendra Kulkarni
Regards,
Devendra Kulkarni
Jalpa Shah
(Expert)
12 November 2010
You can claim depreciation at 15% on Rs. 250000.
If u have sold that damaged machinery then first u have to deduct the sale consideration from the block and on net amount claim depreciation at 15%
If u have sold that damaged machinery then first u have to deduct the sale consideration from the block and on net amount claim depreciation at 15%
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12 November 2010
As per Account:
No treatment if only damaged. If sold as scrap you can make following entry entry.
Depreciation A/c Dr....
Cash/ Bank A/c Dr.....
Loss on sale A/c Dr...
To Plant & machinery A/c.
As per income tax you can only continue claiming depreciation.
No treatment if only damaged. If sold as scrap you can make following entry entry.
Depreciation A/c Dr....
Cash/ Bank A/c Dr.....
Loss on sale A/c Dr...
To Plant & machinery A/c.
As per income tax you can only continue claiming depreciation.
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Hitender Gaur
(Expert)
15 November 2010
Agreed with Sanjay
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