ACCOUNTS
This query is : Resolved
14 January 2011
PLEASE SOLVE MY QUERY
IF WE PURCHASED AN ASSETS IN 2005 AND SALE IT TODAY THEN HOW TO CALCULATE PROFIT AND LOSS ON SALE OF ASSETS AND WHAT ENTRY FIRED IN ACCOUNTS.
IF WE PURCHASED AN ASSETS IN 2005 AND SALE IT TODAY THEN HOW TO CALCULATE PROFIT AND LOSS ON SALE OF ASSETS AND WHAT ENTRY FIRED IN ACCOUNTS.
CMA Ramesh Krishnan
(Expert)
14 January 2011
You need to calculate the depreciation from date of purchase to till date and deduct from asset value and compare the sale value and arrived asset value and you can find the profit and entry will be
Dr: Party / Bank
Dr: Depreciation provision
Dr: Loss on sale ( Incase sale value less then the asset value)
Cr: Asset
Cr: Profie on sale (Incase sale value higher than the asset value
Dr: Party / Bank
Dr: Depreciation provision
Dr: Loss on sale ( Incase sale value less then the asset value)
Cr: Asset
Cr: Profie on sale (Incase sale value higher than the asset value
Ram Avtar Singh
(Expert)
14 January 2011
Purchase value of Assets Less (-)Depreciation till sale date = Current value to Assets
Current value to Assets less(-) sales amount recd= profit or loss on sale of Fixed assets.
Current value to Assets less(-) sales amount recd= profit or loss on sale of Fixed assets.
14 January 2011
it depends on the nature of asset.. if its land then no question of depriciation
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