LOSS ON SALE OF FIXED ASSETS IN CASE OF COMPANY AUDIT
This query is : Resolved
27 September 2019
A car was purchased back in 2014 which has been currently sold i.e. during FY 2018-19.
WDV as on 01.04.2018 of the Car as per books of account is INR 2,00,000/-
Sale of Car on 31.03.2019 at INR 1,50,000/-
My doubt: How will i book the loss of INR 50,000/-? Can I debit the loss from the Statement of Profit & Loss and thereafter add it back for income tax purpose during MAT calculation?
Kindly clear my confusion while calculating profits under both Companies Act and Income Tax Act.
Looking forward to an expert solution.
Thank you.
WDV as on 01.04.2018 of the Car as per books of account is INR 2,00,000/-
Sale of Car on 31.03.2019 at INR 1,50,000/-
My doubt: How will i book the loss of INR 50,000/-? Can I debit the loss from the Statement of Profit & Loss and thereafter add it back for income tax purpose during MAT calculation?
Kindly clear my confusion while calculating profits under both Companies Act and Income Tax Act.
Looking forward to an expert solution.
Thank you.
27 September 2019
As per companies act:
Entry for sale of asset
Debit bank - 150000
Debit Loss on sale of asset 50000
Credit Asset account 200000
As per Income tax act
Memo of Income tax purposes
Business profit
Add : Loss on sales of asset
Entry for sale of asset
Debit bank - 150000
Debit Loss on sale of asset 50000
Credit Asset account 200000
As per Income tax act
Memo of Income tax purposes
Business profit
Add : Loss on sales of asset
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27 September 2019
Thank you sir.
Regards,
Regards,
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