if a person purchase a asset for 5000/- in the financial year 2009-10 in the month april 1
and sell it in the month 31 january 2010 for 4500/-
what will be entry pass for sell of machenary +depericiation and loss incured for selling of asset
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entry for depericiation
Replies (4)
Since the purchase price of the machinery is just Rs. 5000, i would ask you to consider it as a consumable in the books of accounts.
| Originally posted by : Deepesh | ||
 |
Since the purchase price of the machinery is just Rs. 5000, i would ask you to consider it as a consumable in the books of accounts. |
 |
OR
| 1 | Fixed Asset A/c Dr. | purchase price | |
| To Bank A/c | |||
| 2 | Depriciation A/c Dr. | Dep. Amt. | |
| To Fixed Asset A/c | |||
| 3 | Bank A/c Dr. | Sale Amt. | |
| To Fixed Asset A/c | |||
| In case of Loss on Sale | |||
| 4 | Profit & Loss A/c Dr. | Amt. of Loss | |
| To Fixed Asset A/c | |||
| In case of Profit on Sale | |||
| 5 | Fixed Asset A/c Dr. | Amt. of Profit | |
| To Profit & Loss A/c | |||
Dear Sumit
I agree with Mr.Deepesh
For your information You are passed two entry
1) Bank Account Dr.
To Fixed Assets A/c
because you have profit
2) Depriciation A/c Dr.
To Fixed Assets
To Profit & Loss of Sale of Fixed Assets
Note:- Amount of Rs.5,000 not consider in FA accounts.
| Originally posted by : saurabh toshniwal | ||
|
|
Originally posted by : Deepesh Since the purchase price of the machinery is just Rs. 5000, i would ask you to consider it as a consumable in the books of accounts. OR 1 Fixed Asset A/c Dr. purchase price To Bank A/c 2 Depriciation A/c Dr. Dep. Amt. To Fixed Asset A/c 3 Bank A/c Dr. Sale Amt. To Fixed Asset A/c In case of Loss on Sale 4 Profit & Loss A/c Dr. Amt. of Loss To Fixed Asset A/c In case of Profit on Sale 5 Fixed Asset A/c Dr. Amt. of Profit To Profit & Loss A/c |
|
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