Provision for depreceation
This query is : Resolved
10 May 2011
what is accounting treatment provision for deprecation when asset is sold?
Vidya Jain
(Expert)
10 May 2011
Provision of depreciation will be adjusted with the costs to arrive at the net profit orloss on sale of asset. The accounting entry will be:
Bank A/C Dr.
To Fixed assets A/C (Cost)
To Provision for depreciation A/C
To Profit on sale of assets A/C (In case of profit)
Bank A/C Dr.
To Fixed assets A/C (Cost)
To Provision for depreciation A/C
To Profit on sale of assets A/C (In case of profit)
CA Ravi Sisodia
(Expert)
10 May 2011
according to me above accounting entry is wrong.
provision for depreciation transfered to related fixed assets a/c to the extent of assets sold.
provision for depreciation a/c Dr.
to fixed assets a/c
provision for depreciation transfered to related fixed assets a/c to the extent of assets sold.
provision for depreciation a/c Dr.
to fixed assets a/c
CA Ravi Sisodia
(Expert)
10 May 2011
sale of assets - Accounting Entry
Bank a/c Dr.
provision for depreciation a/c Dr.
loss on sale of assets a/c Dr.
To profit on sale of F.A. a/c
To fixed assets a/c
Bank a/c Dr.
provision for depreciation a/c Dr.
loss on sale of assets a/c Dr.
To profit on sale of F.A. a/c
To fixed assets a/c
Message likes :
1 times
Vidya Jain
(Expert)
13 May 2011
I agree to it
Message likes :
1 times
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
- Tax on Amount transferred in HUF Account
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Section 269ST applicability for capital introduced by partner to his partnership firm
- Gift to nri relatives residing in usa
- GST input credit on commercial property
- ETDS return q4 25-26
- GSTR-9C filing
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
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
