Accounting of fixed assets in exchange

Dear All!

Kindly clarify as to how accounting needs to be done in the following scenario in line with AS-10

The company has acquired a mobile phone costing Rs.22,000 by exchanging an old mobile which is taken for Rs.2,000 and paid the balance by cheque. The value of the old mobile in books is Re.0.

Is the Following accounting treatment correct?

Fixed Asset                           Dr               22000

                    To Bank                                                 20,000

                    To Profit on sale of Fixed Asset                 2,000

Replies (1)

The adjustment being done through above entry is correct.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details