If the block of assets ceases to exist
This query is : Resolved
23 February 2012
X ltd owns two plants plant -A & B on 1.4.2010 , W.D.V rs. 2,37,000/-
purchase new plant 'c' for rs. 20,000/-
sold plant 'A' for rs. 3,00,000/-
in this case their is no block of asset on 1.4.2011
but the company still have 2 plant 'B' & 'C' & both are in working condition , in future suppose company sold one machinary suppose 'B' sold for rs. 1,00,000/- than what will be the accounting entry
purchase new plant 'c' for rs. 20,000/-
sold plant 'A' for rs. 3,00,000/-
in this case their is no block of asset on 1.4.2011
but the company still have 2 plant 'B' & 'C' & both are in working condition , in future suppose company sold one machinary suppose 'B' sold for rs. 1,00,000/- than what will be the accounting entry
24 February 2012
When asset A is sold for Rs. 3,00,000/- the amount of Rs. 43,000/- shall be taxable as STCG.
When asset B is sold for Rs. 1 lakh, accounting entry will be:
Bank A/c Dr.
To Profit on sale of machinery.
When asset B is sold for Rs. 1 lakh, accounting entry will be:
Bank A/c Dr.
To Profit on sale of machinery.
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