sale of fixed assets
This query is : Resolved
26 August 2010
Sir,
co. have sold fixed assets according to valuation assets sold on profit ,so pl. guide me that what is accounting entry of sale , profit etc. & on dep. sch. i will less, assets total sale value or before profit value. pls guide me with exmaple.
co. have sold fixed assets according to valuation assets sold on profit ,so pl. guide me that what is accounting entry of sale , profit etc. & on dep. sch. i will less, assets total sale value or before profit value. pls guide me with exmaple.
26 August 2010
Dear sonu,
If sales value of assets >w.d.v. of assets than profit
on other hand if sales value
Accounting Entries
I IN CASE OF PROFIT
Bank/Cash A/c Dr (Sales Value)
To Assets A/c (WDV)
To Profit on sale of assets (Sales value-WDV)
II IN CASE OF LOSS
Bank/Cash A/c Dr (Sales Value)
Loss on sales A/C (WDV-sales value)
TO Assets A/C (WDV )
Please charge the depreciation on resale date.
If sales value of assets >w.d.v. of assets than profit
on other hand if sales value
Accounting Entries
I IN CASE OF PROFIT
Bank/Cash A/c Dr (Sales Value)
To Assets A/c (WDV)
To Profit on sale of assets (Sales value-WDV)
II IN CASE OF LOSS
Bank/Cash A/c Dr (Sales Value)
Loss on sales A/C (WDV-sales value)
TO Assets A/C (WDV )
Please charge the depreciation on resale date.
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