Depreciation on 12-02-2018 at sale of old car

Dear Sir / Madam.,

A Car's opening balance on 01/04/17 Rs. 227,024. The Car sold on 12/02/2018 Rs. 210,000. (Exchange and Purchase New Car).

My Questions :

1. How to provide Depreciation for the Old Car and New Car?

2. How to account this Sale of Old Car?

Replies (2)
If you want to sell your old car, there is no depreciation to be charge. If any profit or loss arising on sale of car, you should transfer the balancing amount to profit and loss a/c. Your accounting entry will be
Cash/Bank a/c Dr. ₹2,10,000.00
Loss on sale of car a/c Dr. ₹17,024.00
To Car a/c (Old Car) ₹ 2,27,024.00

Depreciation shall be chargeable on value of block of asset.

Amount on which depreciation to be charged is (opening+purchase-sale) value. 

Loss/profit  on sale shall be accounted as (sale value-WDV of car as on 12/02/2018)

profit on sale = Rs.17,030   (210000- 192970)(227024 - 227024*15/100)

Journal entry is 

Cash/Bank                            Dr          210000

Accumulated depreciation Dr           34054

   To  Motor car                                                   227024

   To  Profit on sale                                             17030

(Being profit on sale of car accounted)

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