Treatment of depreciation on asset disposal

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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2011 A Fixed Asset was purchased for 100 last year on which accumulated depreciation at the beginning of year is 40/-. During the year 5/- was depreciated. Thereafter entire asset was sold for 14/-. How it will be presented in the Depreciation schedule?

Kindly show drawing a format.

In case you can't attach a template, pl tell me whether, -45/- (40+5) to be shown in current years depreciation adjustment (Main column Depreciation, Sub column Adjustment)? What will be gross block of Asset at the year end? Is it zero (100-1000)?

What will be depreciation balance at the year end? Is it zero (OB 40+Accumulation 5 - adjustment 45)?

What will be Net block at the year end?

mohamed ziaudeen

mohamed ziaudeen (Expert)

07 September 2011 Opening (cost Price) 100.00
Less Asset sold (Transfer to asset a/c) (100.00)
Closing balance 0.000

Accumulated Depreciation (40.00)
Charge during the year (5.00)
Transferred to Asset a/c 45.00
Accumulated depreciation (closing) 0.00

Asset a/c
-------------------------------
To Bal b/d 100.00 By Deprecn 45.00

By cash 14.00
By P&L a/c 41.00
------- ----
100.00 100.00

Loss on sale of asset is Bd 41

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