Depreciation

A/c entries 738 views 4 replies

article assistant

52 Points Joined November 2009

Dear Students and ma friends,

please help me to get an idea about the entries can be made regarding "Depreciation entries"

Question: How we can enter the depreciation entry for sold property with a loss................?

Replies (4)

student

24 Points Joined December 2009

hi shameer,

suppose an asset with cost - 100 and A. Depn - 40 is discarded

then entry willl be as follows:

Accumulated Depn A/c Dr. 40

Loss on asset discarded A/c Dr. 60

To Asset(Original Cost) A/c 100

Regards,

Aman

SENIOR ACCOUNTANT

698 Points Joined May 2008

First of all i would like to say that, if u sold the asset during the year, then no depreciation will be charged and the only entry will be..

party a/c dr

loss on sale of asset dr

to asset a/c

Guest

For Income tax purpose no entry is made.

but for accounting purpose we charge depreciation. take an exappmle.

wdv of asset =50 lacs rate of depreciation 10% (asset sold on 30september for Rs 25 lacs.)

entry will be as follows.

depreciation.....................................................dr 2.5 lacs

Bank/party..........................................................dr 25 lacs

loss on sale of asset.......................................dr 22.5 lacs

to asset account 50 lacs

Struggling Student

272 Points Joined March 2008

Originally posted by : Mosharraf Raza
	For Income tax purpose no entry is made. but for accounting purpose we charge depreciation. take an exappmle. wdv of asset =50 lacs rate of depreciation 10% (asset sold on 30september for Rs 25 lacs.) entry will be as follows. depreciation.....................................................dr 2.5 lacs Bank/party..........................................................dr 25 lacs loss on sale of asset.......................................dr 22.5 lacs to asset account 50 lacs