Sale of Fixed Asset reporting in Fixed Asset Chart asper compnies Act
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02 September 2025
Please help how to report sale of asset in Fixed Asset Chart as per con]mpanies Act.
OP. Gross Block Rs. 39,50,000.00 out of which A asset of original cost 14,50,000 was sold during the year 2024-25.
OP acumulated Depr. 28,40,000.00 (including accumuated depr. of Sold Asset of Rs.384000.00, current year depr. 218000 (including Depr.on sold asset of Rs. 1,40,000.00). Sale Proceed of Asset 725000.00, asset acuired on 2021-22 & asset life 8 years
OP. Gross Block Rs. 39,50,000.00 out of which A asset of original cost 14,50,000 was sold during the year 2024-25.
OP acumulated Depr. 28,40,000.00 (including accumuated depr. of Sold Asset of Rs.384000.00, current year depr. 218000 (including Depr.on sold asset of Rs. 1,40,000.00). Sale Proceed of Asset 725000.00, asset acuired on 2021-22 & asset life 8 years
04 September 2025
To report the sale of an asset in the Fixed Asset Chart as per the Companies Act, the following approach should be taken considering the provided data:
Opening Balances (OP):
Gross Block: Rs. 39.5 L
Accumulated Depreciation: Rs. 28.4 L (includes Rs. 3.84 L related to sold asset)
Asset Sold:
Original Cost: Rs. 14.5 L
Accumulated Depreciation on Sold Asset: Rs. 3.84 L (part of OP Accumulated Depreciation)
Current Year Depreciation on Sold Asset: Rs. 1.4 L
Useful Life: 8 years
Acquisition Year: 2021-22
Sale Proceeds: Rs. 7.25 L
Current Year Total Depreciation: Rs. 2.18 L (includes depreciation of Rs. 1.4 L on sold asset)
Steps to Report Sale of Asset in Fixed Asset Register as per Companies Act:
Gross Block Adjustment: Reduce Gross Block by the original cost of the asset sold (Rs. 14.5 L).
Accumulated Depreciation Adjustment: Reduce Accumulated Depreciation by the accumulated depreciation on the sold asset (Rs. 3.84 L) plus the depreciation for the current year on the sold asset (Rs. 1.4 L). Total adjustment Rs. 5.24 L.
Net Block After Sale:
Opening Net Block = Gross Block - Accumulated Depreciation = 39.5 - 28.4 = Rs. 11.1 L
Less: Net Book Value (Original Cost - Accumulated Depreciation on sold asset) = 14.5 - 5.24 = Rs. 9.26 L.
So net block after removal of asset = 11.1 - 9.26 = Rs. 1.84 L
Profit/Loss on Sale:
Sale Proceeds: Rs. 7.25 L Net Book Value of Sold Asset = Rs. 9.26 L
Profit / (Loss) on Sale = Sale Proceeds - Net Book Value = (Rs. 2.01 L) loss
Fixed Asset Register Entries:
Record disposal of asset: original cost, accumulated depreciation till date (including current year depreciation) and sale proceeds.
Show profit or loss on sale in profit & loss statement as per accounting standards.
Add note on asset life and acquisition year for disclosure.
This complies with Companies Act requirements and Accounting Standard AS-10.
Opening Balances (OP):
Gross Block: Rs. 39.5 L
Accumulated Depreciation: Rs. 28.4 L (includes Rs. 3.84 L related to sold asset)
Asset Sold:
Original Cost: Rs. 14.5 L
Accumulated Depreciation on Sold Asset: Rs. 3.84 L (part of OP Accumulated Depreciation)
Current Year Depreciation on Sold Asset: Rs. 1.4 L
Useful Life: 8 years
Acquisition Year: 2021-22
Sale Proceeds: Rs. 7.25 L
Current Year Total Depreciation: Rs. 2.18 L (includes depreciation of Rs. 1.4 L on sold asset)
Steps to Report Sale of Asset in Fixed Asset Register as per Companies Act:
Gross Block Adjustment: Reduce Gross Block by the original cost of the asset sold (Rs. 14.5 L).
Accumulated Depreciation Adjustment: Reduce Accumulated Depreciation by the accumulated depreciation on the sold asset (Rs. 3.84 L) plus the depreciation for the current year on the sold asset (Rs. 1.4 L). Total adjustment Rs. 5.24 L.
Net Block After Sale:
Opening Net Block = Gross Block - Accumulated Depreciation = 39.5 - 28.4 = Rs. 11.1 L
Less: Net Book Value (Original Cost - Accumulated Depreciation on sold asset) = 14.5 - 5.24 = Rs. 9.26 L.
So net block after removal of asset = 11.1 - 9.26 = Rs. 1.84 L
Profit/Loss on Sale:
Sale Proceeds: Rs. 7.25 L Net Book Value of Sold Asset = Rs. 9.26 L
Profit / (Loss) on Sale = Sale Proceeds - Net Book Value = (Rs. 2.01 L) loss
Fixed Asset Register Entries:
Record disposal of asset: original cost, accumulated depreciation till date (including current year depreciation) and sale proceeds.
Show profit or loss on sale in profit & loss statement as per accounting standards.
Add note on asset life and acquisition year for disclosure.
This complies with Companies Act requirements and Accounting Standard AS-10.
21 September 2025
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