Sale of plant and machinery

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This discussion focuses on accounting for the sale of plant and machinery. It provides guidance on calculating profit or loss by comparing the sale value to the written-down value (WDV). The process also involves calculating depreciation, including a specific instruction for 50% depreciation in the first year if usage is less than 182 days, and then applying a 15% WDV rate thereafter.

Lakshman murthy

Lakshman murthy (Querist)

22 April 2022 Dear Sir/Madam,

in our company machinery purchased for Rs.65,09,029/- on 19.12.2018. and sold for Rs.30,16,000/- on 14.02.2022. kindly help for passing profit/loss on sale of machinery entries. Also help me in calculating depreciation (WDV/SLM)

Regards,

V.L.Murthy

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 April 2022 Calculate 15% wdv depreciation.
For the first year calculate 50% depreciation in view of usage less than 182 days.
Reduce wdv value from the sale value to calculate profit or loss on sale.

Lakshman murthy

Lakshman murthy (Querist)

28 April 2022 sir, Thank you very much.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 April 2022 You are welcome.......

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