Journal Entry
This query is : Resolved
Querist : Anonymous
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
what will be the journal entry for this
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/-
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/-
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9 Annual Return
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Employee secondment
- Reward for festival
- Ito add credit side of bank
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Appointment of Auditor By Form ADT-1
- Capital gain on commercial property and investment in residential property
- Gift to nri relatives resides in usa
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
