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)
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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)
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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)
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28 April 2022 sir, Thank you very much.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 April 2022 You are welcome.......

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