Dear Sir/madam,
What are the journal entries in following cases.
1. Value of Assets is zero due to depreciation but now we are selling the same Assets (scrap) in some value.
Note: We have made the following entires during Procurement and Depreciation booking.
During Procurement : Dr. Assets (equipment)
Cr. Bank a/c
During Depreciation: Dr. Depreciation (equipment)
Cr.Provision for Depreciation (equipment)
Thankyou in advance
Yogendra Chettri
1. adj entry ( provision for depreciation to be transferred to fixed asset a/c
Provision for depreciation a/c Dr.
To fixed asset A/c
2. on sale of fixed asset
Bank A/c Dr.
To Fixed asset
3. Profit on sale of fixed asset. (balancing figure of fixed asset is to be transferred to profit and loss A/c)
Fixed Asset A/c Dr.
To Profit and loss a/c
Fixed Assets are those assets which have useful life of more than 1 year and these assets are used in business and substaintial cost is incurred in purchasing these assets. Fixed assets can be divided on the basis of two things.
https://www.tendersontime.com/publish-tender/fixed-assets.H T M L
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