Depreciation or Loss on sale of asset

Rajib Saha (Accounts Officer) (239 Points)

03 September 2022  

A firm had only one car ( 15% Dep Block): WDV= Rs. 5,60,000. Sold on 1st June at 2021.at Rs. 4,00,000/- How much amount to be eligible for Depreciation? Since the Block ceased to exist, whether balance { Rs. 1.60 Lakh less Depreciation) to be shown as Capital Loss OR the entire Rs. 1,60,000/- may be shown as Depreciation. In any case, the amount to be charged to P&L Account. What would be the correct presentation ? Seeking your  valued opinion.