Accounting entry - Asset disposal

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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

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