Accounting entry,

cash/bank a/c dr 11000

   to machinery a/c    9000

to profit on sale of machinery  2000

IN REPLY TO KUNAL PANSARI.

THE QUESTION DEMANDED ENTRY FOR SALE OF MACHINERY.

SO I REPLIED IN THAT WAY.

HOWEVER U ARE ALSO CORRECT.

Dear Gireesh,

Simply,

Purchase Of Machinery:

Machinery A/c        Dr 10000

 To Cash/Bank A/c  Cr 10000

--------------------------------------------

Depreciation A/c           Dr 1000

    To Machinery A/c      Cr 1000 [Here I Request Kunal To check]

------------------------------------------------------------------------------

Depreciation A/c       Dr   1000   [Considering 1000 As Depreciation For 2013]

   To Machinery A/c   Cr   1000

----------------------------------------------------------------------------------------------------------------

Bank/Cash A/c       Dr 11000

 To Machinery A/c   Cr           8000[Book Balance Of Machine Must Be Zero After This Entry As                                       Depreciation Charged On 2012 & 2013]   

 To P&L A/c            Cr           3000

1.The value of Machinery In Your Books Should Be 8000 Before sale (as 1000 depreciation was already charged & 1000 Considered As depreciation for 2013)

Originally posted by : Kunal Pansari
	Dear Danish, in your reply I would like to say that first of all we need to know the date of selling of machinery because in case if machine was sold on April 2013, we cannot deprecitate the machinery for the whole financial year 2013-2014 Originally posted by : Danish Dear Gireesh, Simply, Purchase Of Machinery: Machinery A/c        Dr 10000  To Cash/Bank A/c  Cr 10000 -------------------------------------------- Depreciation A/c           Dr 1000     To Machinery A/c      Cr 1000 [Here I Request Kunal To check] ------------------------------------------------------------------------------ Depreciation A/c       Dr   1000   [Considering 1000 As Depreciation For 2013]    To Machinery A/c   Cr   1000 ---------------------------------------------------------------------------------------------------------------- Bank/Cash A/c       Dr 11000  To Machinery A/c   Cr           8000[Book Balance Of Machine Must Be Zero After This Entry As                                       Depreciation Charged On 2012 & 2013]     To P&L A/c            Cr           3000     1.The value of Machinery In Your Books Should Be 8000 Before sale (as 1000 depreciation was already charged & 1000 Considered As depreciation for 2013)

Thankyou Kunal For Quote 

I Had it In Mind That The Date Is Matters Thats Why I clearly Mentioned "Considering"

Gireesh' you Should Have to Charge Depreciation On Machinery Other Than If It Sold on 1st Of April -13 

RATES OF DEPRECIATION AS PER COMPANIES ACT, 1956
SCHEDULE XIV 

As per IT 10 %