capital gain

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CA.Ritu Agarwal (Querist)

27 March 2010 A transport company purchase 4 trucks and sold one in the same year. while calculation capital gain/loss can he calim deprecion also.

say,
date of purchase: 30/05/2009
cost : 575000
date of sale: 25/02/2010
sale proceeds : 520000

please calculate cap gain /loss.

Thanks

sivadas chettoor

sivadas chettoor (Expert)

27 March 2010 Bieng a case of depreciable asset with same rate of depreciation you are goverened by the concept of "block assets" and therefore sale of individual assets shall go to reduce the WDV and depreciation shall be available on the balance.

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CA.Ritu Agarwal

CA.Ritu Agarwal (Querist)

27 March 2010 then how to record this entry in books.shall we just credit assets with sale value.

megha

megha (Expert)

27 March 2010 For the purpose of recording it in the books, the Profit /loss on the sale of the assets is to credited or debited to the books. Depreciation to be provided for the truck sold for the period of using it in business.

Profit/ loss = sale value -( Cost of asset - depreciation charged in the p/l)

Sivdas is correct as regards for Income Tax purpose.

sivadas chettoor

sivadas chettoor (Expert)

28 March 2010 You debit the cost of all the asset to one block of trucks or the block carrying same rate of depreciation. Then credit the sale proceeds to that common account. Claim depri on the balance...OK?

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