banner_ad

Journal Entry

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
25 February 2011 An old machinery (worth Rs. 84000) exchanged for a new machinery (worth Rs. 324000) by XYZ ltd payment made 256000
what will be the journal entry for this
Profile Image

S.A.BADAMIKAR

Profile Image

S.A.BADAMIKAR (Expert)
25 February 2011 It is better to treat both transactions seperate to have correct accounting.
1] For sale of Old Machinery - You have to work out whether there is profit or loss - If profit then Pass following entry :
XYZ ltd. A/c debit (Sale consideration) ,
To Old-Machinery A/c credit (WDV value) ,
To Profit on Sale of Machinery Credit (difference Between Sale VAlue & WDV)
If loss :
XYZ ltd. A/c debit (Sale consideration)
Loss on Sale of Machinery debit (difference Between WDV & Sale Value )
To Old-Machinery A/c credit (WDV Value)
2] For Purchase of New Machinery :
New Machinery A/c Debit Rs. 324000/-
To XYZ ltd credit Rs. 324000/-
Profile Image

PINKESH JAIN

Profile Image

PINKESH JAIN (Expert)
25 February 2011 agree with Mr.Badamikar
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
07 June 2026
Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details