AA-47 Accounting for Damaged Equipment Sold

Dr. Asset

Cr. Bank

(Purchased laptop for core services)

Dr. Damage loss 12- after depreciation

Dr. Bank 4

Cr. Asset

Regarding wdv depreciation, I think it's 180 days policy. But can't be claimed more tha. 50% because it's held for sale and below 180 days 

Originally posted by : Yasaswi Gomes new
	Dr. Asset Cr. Bank (Purchased laptop for core services) Dr. Damage loss 16 Dr. Bank 4 Cr. Asset

Why bank account again Dr....???!

@ Raja PM he sold it for 4 thousand he said. 

Actually carrying amount minus depreciation minus impairment  I didn't see a point in impairing because the asset is abosolete

Originally posted by : RAJA P M
	Is the firm Pvt Ltd or Others...??

Dear Raja PM Sir,

It is firm. 

Originally posted by : My Videos
	Originally posted by : RAJA P M Is the firm Pvt Ltd or Others...?? Dear Raja PM Sir, It is firm.

--> Same Year means...

--> Note the date of purchase & date of sale...

--> is this sold direct cash/bank mode or Sundry Creditors...?

--> is there provide depreciation or not...?

Originally posted by : RAJA P M
	Originally posted by : My Videos Originally posted by : RAJA P M Is the firm Pvt Ltd or Others...?? Dear Raja PM Sir, It is firm.  --> Same Year means... --> Note the date of purchase & date of sale... --> is this sold direct cash/bank mode or Sundry Creditors...? --> is there provide depreciation or not...?

Dear Raja PM Sir,

Same Year mean depreciation not charged on it because it was damaged and sold before 1year. Further, We sold it direct cash.

Please educate how to record it as per above example (purchased in 20k and sold in 4k) ?

Depreciation is an annual charge as per company and tax depreciation is 50%. Enjoy your dta.

As per Your input's the Laptop accounted in FA - Rs. 20k. Sold Rs. 4k.

As per me the Entries like below :

Receipt : 

Cr. Laptop A/c - Rs.4000/-

Dr. Cash A/c - Rs. 4000/-

(Give suitable Narration about the transaction)

After the receipt entry the Laptop balance shown Rs. 16000/-.

Now Provide @ 40%*** Depreciation on Laptop Entry. As per the said period depreciation to be provide above 180days as Rs. 8000/-

Journal :

Dr. Depreciation on Laptop - Rs. 8000

Cr. Laptop A/c - Rs.8000/-

(Give suitable Narration about the transaction)

After the Journal entry (depreciation) the Laptop balance shown Rs. 8000/-. Now the 8000 is loss of sale of Laptop. So, You want enter journal entry to PandL a/c.

Journal :

Dr. Loss on Sale of Laptop - Rs. 8000/- (ledger under Indirect Expenses)

Cr. Laptop A/c - Rs.8000/- 

(Give suitable Narration about the transaction)

The Process is completed.

Note :

here you are not asking GST entry. So, I'm not give GST entry...

 Disposals valuation is lower of carrying amount or NRV. Carrying amount is 8k minus impairment= 0, Fvlcd=4k. That's why asset is fully impaired

Dr. Bank 5160

Cr. GST 1120

Cr. Tcs 40

Cr. Laptop scrap sale 4000

And 

Dr. Impairment loss 8k 

Cr. Laptop 8k 

And

Dr. Dta asset 

Cr. P&L

2,667 DTA arises for 3 years useful life.

Then scrap at 1% and e waste at 28%

Sorry! Hope the numbers are right and all transactions complete!