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
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%
Message likes :
1 times
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.
Message likes :
1 times
15 November 2010
Agreed with Sanjay
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is any professional CA is here please reply
- Reopen of assessment proceeding
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Putting a heading on received mail
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Experts need help
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Rental income gst and it purpose
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
