REMOVAL OF ASSET FROM COMPANY ACCOUNTS

This query is : Resolved

ACCOUNTS08 (Querist)
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18 November 2019 There is a vehicle in company accounts which has actually been purchased for a director.Now the director has resigned and wants the car back. What would be the steps for removing the vehicle from the books of the company.

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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18 November 2019 From your query , we understand that CAR was sold to the ex director. if so

Bank ( for sales value) Dr
Vehicles ( for basic sales value) Cr
GST Cr

Depreciation from 01.04.19 to till the date of sales
Depreciation Dr
Vehicle Cr

Loss on sales of vehicle ( if loss) Dr
;Profit on sales of veicel ( if Profit) Cr
Vehicle ( Credit of loss on sale) & ( Debit for profit on sale

ACCOUNTS08

ACCOUNTS08 (Querist)
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29 November 2019 can the car be transferred free of cost?

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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29 November 2019 The decision to be taken by the board. Then also sale value is to be considered as Zero and the book value to be booked as loss on sale of asset. and that amount will be disallowed in Income Tax memo. The GST angle for free supply should also be checked with experts