HOW TO PREPARE BOOKS OF ACCOUNT
This query is : Resolved
kausar alam
(Querist)
22 October 2010
HOW TO PREPARE BOOKS OF ACCOUNT FOR PROPRIETOR
FOR EXAMPLE -
MACHINERY A- RS. 15000
MACHINERY B- RS. 10000
MACHINERY C- RS. 5000
TOTAL RS. 30000
IF ASSETS A IS SOLD FOR RS 35000. THEN ASSETS WILL BE SOLD IN BALANCE SHEET
FOR EXAMPLE -
MACHINERY A- RS. 15000
MACHINERY B- RS. 10000
MACHINERY C- RS. 5000
TOTAL RS. 30000
IF ASSETS A IS SOLD FOR RS 35000. THEN ASSETS WILL BE SOLD IN BALANCE SHEET
CA KISHORE VANAMA
(Expert)
22 October 2010
There is no specific method for preparing accounts of Proprietor,even though we will calculate depreciation and follow the method as specified in income Tax Act
23 October 2010
Assets in balance sheet RS. 15000
Profit on sale of assets is RS. 20000
Profit on sale of assets is RS. 20000
sivasankar
(Expert)
23 October 2010
Sir,
Keep separate ledger accounts for the three machines.If A is sold fully for a profit transfer the profit to P and L a/c as income and the other two machines will continue to be in the balance sheet.
Keep separate ledger accounts for the three machines.If A is sold fully for a profit transfer the profit to P and L a/c as income and the other two machines will continue to be in the balance sheet.
kausar alam
(Querist)
23 October 2010
Keep separate ledger accounts for the three machines.If A is sold fully for a profit transfer the profit to P and L a/c as income and the other two machines will continue to be in the balance sheet.
but dear what about the block assets concept
Keep separate ledger accounts for the three machines.If A is sold fully for a profit transfer the profit to P and L a/c as income and the other two machines will continue to be in the balance sheet.
but dear what about the block assets concept
sivasankar
(Expert)
23 October 2010
My Dear,
Your query was regarding the accounting entries so only Tax angle was untouched.
If you want the answer in IT view point,
the other two assets will be in the books as mentioned earlier and the Block of assets concept is only for IT purpose. You need not pay capital gain tax since your balance of the block becomes nil.
regards
sivasankar
advocate
Your query was regarding the accounting entries so only Tax angle was untouched.
If you want the answer in IT view point,
the other two assets will be in the books as mentioned earlier and the Block of assets concept is only for IT purpose. You need not pay capital gain tax since your balance of the block becomes nil.
regards
sivasankar
advocate
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