Loss on sale of asset

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2016 Dear All
There are two asstes in the block of
15% one asset WDV was 178890 as on
1/4/2015 and another asset WDV was
66712 as on 1/4/2015 total block WDV was 245602 as on 1/4/2015, the asset
whose wdv was 66712 as on 1/4/2015 has been sold in Rs. 30000 then the loss of 36712 i know dep will be calculate on 215602 but tell me can i clubbed the loss of 36712 with existing asset by passing entry
Existing asset Dr...36712
To loss on sale of asset..36712

Because dep will be charge on
178890 plus 36712 total 215602/-

Pls clarify is it correct,

Regds
Ankit gwala

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 October 2016 It is not right to pass the above entry. In the books the loss on sale of asset is charged to P&L but for IT it will be continued to be depreciated under block of assets concept.

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)

19 October 2016 According to my opinion You can pass entry and charge the loss to blocks of assets . other wise your books of accounts shows different value with financial statement .

And According to income tax Act till the block seizes gain or loss shall not be recognised . i.e., it shall be adjusted to other assets exists . Hence forth I advice to pass entry and charge the depreciation on assets .

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now