Fixed assets

a new machine is purchased and the payment is made partly in cash and partly through the sale of another machinery which is not fully depreciated.what journal entries should i pass in my books?
Replies (4)

1) Provide Depreciation on old Machinery:-

        Depreciation A/c                               Dr          XXX

                          To Old machineryA/c                             XXX

 

2) On Purchase of New machinery:-

       New Machinery A/c                          Dr           XXX

                          To  Cash A/c                                        XXX

                           To  Old Machinery A/c                          XXX

 

        

Ok..but actually i have to calculate the profit/loss on the sale of asset too.

 

Dear Member,

Machinery A/c        Dr.

      To Cash / Bnak A/c

Dear Member,

Macchinery A/c        Dr.

      To Cash / Bnak A/c

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