Sale of Assets to Parent company

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Prasanna Bhat (Querist)
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08 July 2009 We are selling our companies assets at book value to our parent company in india.

Kindly let me know what is the entry to be passed for making accumulated deprecation as nil.

UMA SHANKER SHARDA

UMA SHANKER SHARDA (Expert)
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11 July 2009 If you are showing accummulated depreciation as depreciation reserve in liabilities side, than u need to pass entry, otherwise sale the assets at wdv and pass the following entry :
Debit buyer
Credit Assets
The accummulated dep shall be shown as adjustment in fixed assets schedule to make it NIL

Prasanna Bhat

Prasanna Bhat (Querist)
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11 July 2009 Sir,

My question is that we have decided to sell the assets as book value to our parent company and accumulated depreciation is shown in the liability side tell me what entry to be passed

as per my knowledge the first entry need to be passed is debit our parent company and credit fixed assets & iam not clear abt the entry to be passed to knock of accumulated depreciation kindly resolve

Prasanna Bhat

Prasanna Bhat (Querist)
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13 July 2009 Sir,

My question is that we have decided to sell the assets as book value to our parent company and accumulated depreciation is shown in the liability side tell me what entry to be passed

as per my knowledge the first entry need to be passed is debit our parent company and credit fixed assets & iam not clear abt the entry to be passed to knock of accumulated depreciation kindly resolve