Sales of fixed assets
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 December 2011
sir
we are manufacturing of two wheeler Bike accessories, we have sale one machine to any other manufacture & charge CST, my query is that Sale of Machinery will be Count in Sales Accounts or decrease Our Fixed Assets from Balance Sheet.i have done below entry as example
(1) Party A/c Dr 102
Sales A/c Cr 100
CST Cr 2
(2) Sales A/c Dr 100
Machinery A/c Cr 100
kindly suggest.
we are manufacturing of two wheeler Bike accessories, we have sale one machine to any other manufacture & charge CST, my query is that Sale of Machinery will be Count in Sales Accounts or decrease Our Fixed Assets from Balance Sheet.i have done below entry as example
(1) Party A/c Dr 102
Sales A/c Cr 100
CST Cr 2
(2) Sales A/c Dr 100
Machinery A/c Cr 100
kindly suggest.
19 December 2011
Your entries are correct but instead of using sales account use income from sale of machinery account because of the reason that if you have to use sales account for the products you sale out regularly and sale of machinery being a irregular transaction must be shown seperately and you will have to charge capital gains tax as well on the transaction as per the income tax act if the machinery has been sold at profit.
CA.Richi Saxena
CA.Richi Saxena
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