Sale of capital goods

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CA Priyanka Goyal (Querist)
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30 December 2011 Sir,

we are going to sale one of our capital goods (Machinery). we will sale it against form C through central sale invoice. How the entry will be passed in Tally ERP9.Machinery will be sold in Rs. 16 Lakhs on which CST will be Rs. 32000. Earlier this machine was used as fixed assets.

Plz reply
Thanks in advance

CA Navin Jain

CA Navin Jain (Expert)
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30 December 2011 BANK -DR RS. 1632000
TO MACHINERY- RS. 1600000
TO CST PAYABLE RS. 32000

2.Depreciation reserve Dr
to machinery
( Amt of depreciation charged from the date of put to use to date of the sale of machinery)

3. Loss on sale of fixed assets- dr
to machinery

0r
Machinery -dr
TO Profit on sale of fixed assets

CA Priyanka Goyal

CA Priyanka Goyal (Querist)
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31 December 2011 but sir in this way how can we issue central sale invoice as for issue a sale invoice there should be a stock item. We are to issue original sale invoice?

CA Navin Jain

CA Navin Jain (Expert)
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31 December 2011 Issue a sale invoice.

CA Priyanka Goyal

CA Priyanka Goyal (Querist)
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31 December 2011 sir, to issue a sale invoice we have to create some stock item, how can i convert a fixed assets in stock item?

CA Navin Jain

CA Navin Jain (Expert)
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31 December 2011 no need to convert the fixed assets into stock.

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