Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Assets book as expenses

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2015 Hi, In our company we buy some batteries,that book as expenses, now we buy new batteries in replacement of old,and we get some value of old batteries.

my query is that what is the entry of that amt i should pass.
Ex. Old Batteries value is 114000
New batteries value 170000
old batteries taken at value 30000

So what is the entry of 30000 i should passed?

Ashok

Ashok (Expert)

12 March 2015 If Batteries are considered as Capital items, then the entry will be as under:-
(1)Party A/c Dr. 30,000
To Sale of Assets A/c 25,000
CST/ VAT 5,000
(For booking the transaction)
(2)Bank A/c Dr. 30,000
To Party A/c 30,000
(For receipt of payment)

If Batteries are considered as Revenue items,then the entry will be as under:-
(1) Bank A/c Dr. 30,000
To Sundry Receipts 30,000
(For receipt of payment)

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2015 Thanks For Kind Support

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