Sold of fixed asset treatment

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2014 Dear Sir,

I have sold one LED only of desktop PC in Rs. 2000/-, which was bought in 2011-12 with complete desktop pc as LED, Mouse, Keyboard, everything. And now after depreciation, its value is Rs. 5000/- in ledger account. Pls guide me how to treat of make the entry of this transaction with example.

DR CR
DR CASH 2000
CR COMPUTER & PRINTER 5000
DR PROFIT & LOSS 3000

But sir with above treatment the total computer & printer head or desktop asset would finished from books. Then pls tell me how to treat it.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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16 March 2014 You just pass the entry of Rs. 2000/- Dr to cash account and credit to Computer and printer.
The depreciation will be charge on remaining amount that is Rs 3000/- as per Income tax act.

Querist : Anonymous

Querist : Anonymous (Querist)

16 March 2014 Thanks to respond firstly.
But sir i am talking about limited company. In this case, treatment would be same. And where would go loss amount of Rs. 3000/-. This will not be transffered to profit & loss account.