Accounting treatment

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2012 Dear all,
Please solve the query-
A purchased a machine in Jan.2010 for Rs. 1100000/- for which he paid Rs. 1000000/- at the time of purchase and rest amount was to be paid after 180 days successfully running of machine. The machine could not run well even for 100 days and A had to spend huge amount on repairs in april 2010. He did not pay the seller the remaining amount of Rs. 100000/- for which the seller could agree only upto may 2011. The due amount was shown in balance sheets of 2009-10 and 2010-11 as payable.
Now,in 2011-12, A wants to delete that entry. What should be the proper treatment . Please suggest.
Thanks

Mihir Doshi

Mihir Doshi (Expert)
Follow

11 May 2012 What entry did you pass for 100000/-

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

11 May 2012 The entry will be as under:

Creditor A/c Dr
To Plant & Machinery

Creditor's balance will be written off and the carrying amount of Plant & Machinery shall be reduced.

Message likes : 1 times

SANJAY

SANJAY (Expert)
Follow

11 May 2012 Agreed with Mr. Siddhartha..

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2012 And what about the depreciation allowed in previous years?

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

BALU RAJADURAI

GOVIND VAJIRAJ DESAI

Shraddha Pangam

AKCJ INFO

Narendra

Subscribe Now

Accounting treatment

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA