Provision for depreciation
This query is : Resolved
ABHIJIT BORAH
(Querist)
06 June 2014
i used to get confused regarding provision for depreciation and asset disposal.. can any1 pls guide me to understand what r dis n how it is calculated namely-
1) provision for depreciation
2) asset disposal
Ganeshbabu K
(Expert)
06 June 2014
Depreciation is caluculated on no.of days used for a particular asset
.
.
Dr.DepreciationA/c
Cr.Accumulated depreciation A/c
On asset disposal total asset should delete from books,,so
.
Dr.Buyer of our assetA/c(sale consideration)
Dr.Accumulated depreciation(depreciation charged upto date of sale)
Dr.Loss on sale of asset
Cr.Fixed Asset(cost of asset)
Cr.Profit on sale of asset
.
.
Dr.DepreciationA/c
Cr.Accumulated depreciation A/c
On asset disposal total asset should delete from books,,so
.
Dr.Buyer of our assetA/c(sale consideration)
Dr.Accumulated depreciation(depreciation charged upto date of sale)
Dr.Loss on sale of asset
Cr.Fixed Asset(cost of asset)
Cr.Profit on sale of asset
Rupesh Jain
(Expert)
07 June 2014
yes ans by ganesh babu is correct
07 June 2014
futher profit or loss on sale of asset is transferred to profit and loss a/c.
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