how would you deal with following situation ?
the company has sold some old machinery for Rs. 1 crore.the details of the cost of such machinery are not available since the entire recording relating to fixed assets has been destroyed in earthquake.
this is question from d.s.rawat sir's book
The company may therefore, have to determine the same on some estimated basis provided all reasonable efforts to determine the Cost/WDV of the machinery do not yield any better result. An all out attempt should be made by the management to reconstruct the old records.
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Such records may be constructed by obtaining old copies of annual reports distributed amongst shareholders, annual accounts filed with Registrar of Company; IT Returns filed by the auditor may also be having record of physical verification of earlier years etc. In fact, through this process, the company shall be able to determine the WDV of the asset because the machinery sold seems to be quite big and must have been recorded on standalone basis.
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Refer Page No. 6.6 and Question No. 4(a)
i had puchased a fixed asset of rs. 10 lacs and for same i had received subsidy of rs. 8 lacs
so which amt i have debited to fixed asset account and on which amt i should charged depreciation.
CAclubindia
