banner_ad

Accounting entry - Asset disposal

Accounting Entries 1291 views 4 replies

Suppose an asset is bought by the company for Rs.100 and depreciation on it till date is 75.   what accounting entry should be passed when the concerned asset is given away to an employee without consideration at the end of employees' service with the company?

 

The depreciation entry passed every  month is

 

Depreciation A./c..........................Dr.

                To Provision for depreciation A/c

 

Thanks

Replies (4)

I think so the Journal entry will be :-

 

Gift to employee A/c      Dr.          75

(Grouped under Indirect Exps)

           To Asset A/c                               75
(Being Asset gifted to employee at its WDV.)

 

 

Regards,

Devendra K

according to me, the entry will be:

          Gift to employee A/c            Dr.                          

                      To Asset Disposal A/c                           

          (Being asset transferred to employee without any consideration)

           

When a block ceases to exit, following entry is to be passed:-

 

Depre Fund Dr. 75

P/L Dr (Loss) 25

      To asset          100

BONUS TO EMPLOYEESA/C____________Dr    75

PROV. FOR DEP.A/C__________________Dr.    25

                 TO ASSET A/C                                                        100


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details