Sale of fixed asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2012 My boss have old TV and telephone instruments,which were shown in fixed assets.The TV was damaged and sold for Rs.5000/- the asset value was Rs.54000/- after depreciation.And also Telphone instruments were sold very old and sold in as scrap.The asset value was Rs.94000/-and he got Rs.20000/- as scrap value.
What is the entry to be passed in his books of accounts.
Please reply back immediately.

Sumti Bhadani

Sumti Bhadani (Expert)
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28 April 2012 For Sale of TV:-
Cash/Bank a/c Dr 5000
Loss on sale of TV a/c Dr 49000
To TV 54000

For sale of Telephone Instrument
Cash/Bank a/c Dr 20000
Loss on sale of Tel. Ins. a/c Dr 74000
To Telephone Instrument 94000

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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28 April 2012 SInce TV & instruments were treated as fixed assets, difference will be treated as. Following entry to be passed(assuming there is no provision for depreciation)

Bank/Cash A/C Dr. 5000
P & L A/C Dr. 49000
Aseet TV A/C cr. 54000

Bank A/C Dr. 20000
P & L A/C Dr. 74000
Telephone Instrum. Cr. 94000