My query is : If a fixed asset which is a scorpio Car purchased with a loan from a Bank sold then what will be the accouting entry for the given details.
WDV of the Car on 31/3/09 is 564427.94.
Sale value of the car is 460000.00.
Amount paid by the party 261557/- and for closure of Loan account 198303/-
Vehicle sold in the month of June 09.
I want to know the entry for closure of loan account and sale of the fixed asset.
Bank A/c Dr 460000
To FA A/c 460000
Loss on sale A/c Dr. 104427.94
To FA a/c 104427.94
Loan A/c Dr. 198303
To bank a/c 198303
Detail Entry for sale of Fixed Asset - Scorpio
I agree with Sheetal Metha
Dep Dr 21166
To Car 21166 3 mnths Depreciation
BANK Dr 261557
Loss on sale Dr 83261.94
Loan A/c Dr 198303
Round Off Dr 140
Car Cr 543261.94
Absolutely right Sheetal Mehta. Good work ...
Sorry!!!!
Mah fault
totally ignored the date part, I overlooked it.
But anyways I too agree with Sheetal
I AGREE WITH SHEETAL
If its profit on sale of the fixed asset, we have to disregard it fron the computation right?
In above Case can we claim depreciation (Rs.21166/-) against our business income or claim short term capital loss as block of assets get zaro, and if block of assets not zero then what would be the treatment !!!
its corret
Vehicle Price = 500000/-
Dep.= 10%
Use in 20 Year
Sale of Vehicle= 100000/-
tell me loss or profit on asset and make nessecery entry in book
thanking you
CAclubindia
