All Respected Members,
Please endrose following with giving concept:
Suppose, a business sell an assets on which depreciation of previous years was not charged, sould they pass following entry:
Bank Dr
Loss on Sales. Dr. Loss
Assets Value Cr. (Full Value)
In this case Assets was purchased some years before but it's value is showing same which was at the time of purchase because depreciation was not charged but it's value in market has been reduced, so this Assets will definitely sell in less value so difference of sell value and actual value will record as loss in sell.
I hope that I will receive informative reply on this matter at earliest from members.
CAclubindia
