URGENT :Treatment of asset sale under IT act & Co's Act ?
This query is : Resolved
CMA. Subhash Kumar Jha
(Querist)
10 April 2009
Sir,
We have salvaged a mobile purchased in 2006-07. Purchase cost was Rs. 5449/- & salvage value is Rs. 500/-
How to treat the depreciation / loss / salvage value in both IT Act & Co's Act.
This is urgent.
Thanks
Subhash
We have salvaged a mobile purchased in 2006-07. Purchase cost was Rs. 5449/- & salvage value is Rs. 500/-
How to treat the depreciation / loss / salvage value in both IT Act & Co's Act.
This is urgent.
Thanks
Subhash
CA. B.SRINIVASULU
(Expert)
10 April 2009
IT act :
Just credit the sale value to the Block.
Comanies Act.
Remove purchase cost of Rs.5449 from cost block.
Depreciation - calculate upto the date of sale. For Eg. 5100. Remove the same from the depreciation block.
Profit on sale of assest 500 - 349 (5449-5100) = 151 . Pass journal entry for profit.
Just credit the sale value to the Block.
Comanies Act.
Remove purchase cost of Rs.5449 from cost block.
Depreciation - calculate upto the date of sale. For Eg. 5100. Remove the same from the depreciation block.
Profit on sale of assest 500 - 349 (5449-5100) = 151 . Pass journal entry for profit.
CMA. Subhash Kumar Jha
(Querist)
10 April 2009
Thanks
10 April 2009
i agree with the expert
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