Sale of a fixed asset

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Divya Karthik (Querist)
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09 September 2010 When in a block of asset, a fixed asset is sold, we will not reconise profit or loss on sale unless if its the only asset in the block.Right?If there are more than 1 asset in a particular block, and an asset is sold.What entry shall we pass in the books to make it in accordance with block of asset concept?Kindly guide...

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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10 September 2010 See... if its a company , the entry will be passed as per companies act, where profit / loss on individual asset will be calculated.

But in the block of asset concept, the entry will be :

Cash / Bank Dr.

To Asset head Cr.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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10 September 2010 Entry will be simply for the amount recd as sale proceeds.

Divya Karthik

Divya Karthik (Querist)
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12 September 2010 But the difference b/w the wdv & the sales proceeds cannot be shown in the fixed asset schedule as closing wdv, right as the asset is sold?So how should it be presented in the audit report and the entry to be passed in the books?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 https://docs.google.com/document/d/1MQeTdLSeISJiVtkABEj7NIih6Jn5utTFt3s1yQmzHvY/edit?usp=sharing

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