Help me first than anybody else

first pass the entry of disposing of the old assets

CashA/c                                  Dr

      To AssetA/c

than pass the entry of purchasing of an new asset

AssetA/c                               Dr

            To CashA/c

If old asset is taken over at book value( i.e wdv)

Asset account    (new asset)                            dr

                   to  cash/bank/party

                   to  Asset account (old asset)

if not then you have to book profit or loss also.

hope its clear...............

1.Asset (New) A/c Dr.

     To Asset (old)

     To Profit & Loss A/c (If residual value of asset given up is less than asset acquired i.e Profit)

2. Asset (new) A/c Dr

Profit & loss A/c(IF residual value of asset given up is more than asset acquired i.e Loss)

      To Asset (old) A/c.

EXAMPLE: (1) New asset value Rs.1000

                           WDV of old asset Rs.600

                          Assume Agreed value of old asset for exchange purpose   Rs.450

New asset a/c   Dr   1000   (value of new asset)     

Profit &loss a/c Dr    150 (loss on disposal of old asset)

      To old asset a/c             600               (disposal of old asset)

       To cash a/c                  550               (balance amount settled in cash )

EXAMPLE: (2) New asset value Rs.1000

                        WDV of old asset Rs.600

                       Assume Agreed value of old asset for exchange purpose   Rs.750

New asset a/c Dr 1000

     To old asset a/c         600

    To cash a/c                 250

   To profit & loss a/c     150

On purchase of new asset in exchange with old asset the following entries required to be passed in books based on consequences explained there in