banner_ad

purchase of an asset on exchange to another asset

This query is : Resolved 
Profile Image

Profile Image

(Querist)
28 April 2011 Dear Sir,
During the financial year, we have purchase an asset. We availed an offer to exchange an old asset in our books for the new one purchased.
New asset = Rs.50,000/-

Less: Offer for
exchange of old
asset = Rs.10,000/-
===========
AMOUNT PAID = Rs.40,000/-
===========

The book value of old asset (referred above) is
Original cost = Rs.3,000/-
Less: Dep Reserve = Rs.2,999/-
----------
WDV = Rs. 1/-
==========

Please advise the journal entry to be passed on the above.
Regards
S. Anand
Profile Image

Mandar

Profile Image

Mandar (Expert)
28 April 2011 Vendor A/c Dr 10000
To Asset A/c 1
To Profit on sale of asset A/c 9999
Being sale of old asset)


F Asset A/c Dr 50000
To Vendor Account 50000
Being Purchase of new asset


Vendor A/c Dr 40000
To Bank Account 40000
Being payment to vendor
Profile Image

S. Anand

Profile Image

S. Anand (Querist)
28 April 2011 Thank you very much
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details