While doing finalisation & while preparing Fixed asset schedule, we will have for cost as
opening, additions, deletions & then total. Under deletions, should I take the sale value(Consideration received) or original cost of the asset(which is sold) ? Please clarify..........
Similarly for IT Act, under Block assets concept, I think I should take the sale value(Consideration received) for deducting from the gross block. Correct me If I am wrong.
To the extend of my knowledge,, whatever u discussed is absolutely fine and correct.
In the firs case, you should consider the cost of asset, i.e when asset is sold, less (written down value+accumulateddepreciation+loss on sale) or else (wdv + dep. - profit on sale)...
And as per IT act, u shd consider the consideration recieved.
Format of fixed asset schedule is as follows:
Gross Block Depriciation Net Block
Opening Additions Deductions Closing upto 1/4/xx for the C.Y As on 1/4/xx as on 31/3/xx
It is preapred at orignal cost only as the diff between sales value and WDV is charged to P&L.
For income tax purpose it will be shown at sales value. However if the entire block of asset has been sold then the block will cease to exist, irrespevtive of its sales value.
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