Journal entry in books
This query is : Resolved
29 November 2013
please the Entries to be pass in books
company having a car which has been used for past few years, now the company has purchased a new car with the adjustment of resell value of old car. example ;
value in books 1st april. 25000/-( bookvalue 5.0 lcs )
value of new car = 10 lcs at invoice
payment to vendor = 9.90 ( after adj. of resale value of old car).
is there any difference if the WDV given on 1st APRIL is Zero. but we are using the assets. rest are same.....
company having a car which has been used for past few years, now the company has purchased a new car with the adjustment of resell value of old car. example ;
value in books 1st april. 25000/-( bookvalue 5.0 lcs )
value of new car = 10 lcs at invoice
payment to vendor = 9.90 ( after adj. of resale value of old car).
is there any difference if the WDV given on 1st APRIL is Zero. but we are using the assets. rest are same.....
01 December 2013
Actual value of new car Rs.10 lakhs
After adjusting old car paid Rs.9.90 lakh hence the old car sale value Rs.10000
Book value of old car Rs.25000 and sale value Rs.10000 hence the loss on sale of old car Rs.15000 (25000-10000)
entries will be
Dr: New car Rs.10,00,000
Dr: Loss on sale of old car Rs. 15000
Cr: Old car Rs.25000
Cr: Vendor Rs. 9,90,000
After adjusting old car paid Rs.9.90 lakh hence the old car sale value Rs.10000
Book value of old car Rs.25000 and sale value Rs.10000 hence the loss on sale of old car Rs.15000 (25000-10000)
entries will be
Dr: New car Rs.10,00,000
Dr: Loss on sale of old car Rs. 15000
Cr: Old car Rs.25000
Cr: Vendor Rs. 9,90,000
01 December 2013
Incase WDV value is zero then you have profit on sale on old car
Sale value Rs.10000 and WDV Rs.0 so profit is Rs.10000
Then entry will be
Dr: New car Rs,1000000
Cr: Profit on sale of old car Rs.10000
Cr: Vendor Rs, 9,90,000
Sale value Rs.10000 and WDV Rs.0 so profit is Rs.10000
Then entry will be
Dr: New car Rs,1000000
Cr: Profit on sale of old car Rs.10000
Cr: Vendor Rs, 9,90,000
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