Anil (1638 Points)
09 January 2011Suppose 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
Devendra
(Chartered Accountant)
(4775 Points)
Replied 09 January 2011
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
Varun Dushi
(student)
(21 Points)
Replied 17 May 2011
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)
Parthsarthi Patel
(CA)
(98 Points)
Replied 01 June 2011
When a block ceases to exit, following entry is to be passed:-
Depre Fund Dr. 75
P/L Dr (Loss) 25
To asset 100
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 01 June 2011
BONUS TO EMPLOYEESA/C____________Dr 75
PROV. FOR DEP.A/C__________________Dr. 25
TO ASSET A/C 100
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