Depreciation & fixed asset accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 Hello
My query is,In balance sheet Fixed Assets are shown in historical cost & there is a depreciation fund account & WDV method is followed for depreciation calculation. In case of Block of assets sale amount should be deducted from WDV amount but while showing in balance sheet should we have to deduct cost price from fixed asset & depreciation portion from depreciation fund account?. what is the journal entry?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

16 April 2015 In the balance sheet cost price has to be deducted from fixed asset and depreciation from depreciation reserve (fund account).
Journal entry is :
Depreciation reserve ac Dr
Profit/loss on sale of asset
To Fixed assest ac Cr

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 But in case of block of asset how profit/loss on sale of asset will arise?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 April 2015 Block of asset is for income tax purpose only that is separate calculation for working out taxable profit, out side the books of accounts.
In the books of accounts profit or loss on sale of assets has to be accounted.

Message likes : 1 times

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

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

RADHAKRISHNAN A R

madhuseshu yathirajam

Ashif Cheenikkal

SHRI HARIRAO

J.Vijai

Subscribe Now

Depreciation & fixed asset accounting

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Accountant

CA Final

GST CONSULTANCY

Senior Executive

Manager- Finance and Compliance