Pls tell me what r the entries for machinery sale? I have not maintain provision for dep a/c. Origianl Cost 1589563 Loss on sale 505298 Received from party 200000 Balance amout 884265 CA showed in Schedule D in Adjustment for sale column. I don't understand where to adjust
20 August 2011
Depreciated Value Of Assets At Time Of Sale =Rs 725298.00 Depreciation Amount Till Sale =Rs884265.00 Sale Consideration =Rs 200000.00 Loss On Sale =Rs 505298.00 If All The Above Information Is Right Then There is No Need For Any Adjustment As You Just Have To pass A Simple Journal Entry & That is: Bank A/C Dr-200000.00 P/L A/C Dr-505298.00(Loss On Sale) Machinery A/C Cr-725298.00 884265.00 Is Nothing But The Depreciation Amount That You Have Deducted From Assets Every Year Here It Looks That You Have Not Transferred The depreciation Amount To Profit & Loss Account. For Checking Your Account You need To First Check The Ledger Of That machinery & Depreciation
On Purchase: Machinery dr-1589563.00 Bank/Creditors Cr-1589563.00
On Sale As Consolidated Basis( As Dep. Rate is Unknown) A. Bank A/C Dr-200000.00 P/L A/C Dr-505298.00(Loss On Sale) Depreciation A/C Dr-884265.00 Machinery A/C Cr-1589563.00 B. P/L A/C Dr-884265.00 ( Dep. Transferred To P/L A/C) Depreciation A/C Cr-884265.00
27 September 2011
how come the deprecition can be 8 lakhs in such case, even there is no use of original cost, it may be opening, i believe information is wrongly posted
CAclubindia
