Provision for depreceation

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rudram77

rudram77 (Querist)
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10 May 2011 what is accounting treatment provision for deprecation when asset is sold?

Vidya Jain

Vidya Jain (Expert)
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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)

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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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

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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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

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Vidya Jain

Vidya Jain (Expert)
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13 May 2011 I agree to it

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