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
Message likes :
1 times
27 September 2019
Thank you sir.
Regards,
Regards,
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
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- GST Rate for Catering Services
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Journal entry of busniess expenses
- TDS AND ITR ISSUE
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- FCRA 6 E- Intimation
- 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
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
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
