Sale of Asset
This query is : Resolved
28 June 2010
Hello,
Original cost of asset sold :Rs415000
WDV of asset sold as on :Rs.334092
Asset sold for Rs 25500/-
the depreciation has been provided as per Companies Act,1956
Will the loss on sale of asset be allowed as per Companies Act for the company?if yes,what would be the amount of Loss?
Thanks & regards
Original cost of asset sold :Rs415000
WDV of asset sold as on :Rs.334092
Asset sold for Rs 25500/-
the depreciation has been provided as per Companies Act,1956
Will the loss on sale of asset be allowed as per Companies Act for the company?if yes,what would be the amount of Loss?
Thanks & regards
28 June 2010
Entry will be in the books.
Bank A/c Dr. 25500/-
Loss on sale Dr. 308592/-
To Asset A/c 334092/-
In Dep sch of Company Act, Gross Block will be reduced by Rs. 415000 and Opening Dep will be reduced by 80098/-.
in Dep schd of Income tax, Block of asset is reduced by Rs. 25500/- only.
At the time of computation of inomce tax liablity, loss be add back to income i.e it is disallowed.
Bank A/c Dr. 25500/-
Loss on sale Dr. 308592/-
To Asset A/c 334092/-
In Dep sch of Company Act, Gross Block will be reduced by Rs. 415000 and Opening Dep will be reduced by 80098/-.
in Dep schd of Income tax, Block of asset is reduced by Rs. 25500/- only.
At the time of computation of inomce tax liablity, loss be add back to income i.e it is disallowed.
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