Help me first than anybody else

A/c entries 1300 views 7 replies

Hey buddies need yr help once again as usual......... Kindly send me the accounting entries to be passed in case of Purchase of an asset on exchange of Old asset which has some descent WDV value.......... Kindly be clear in yr entries....... Thanks a looooooooot in advance yer........... Cheeeeeeers......................

Replies (7)

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

 

Cases

Cost of New Asset

WDV of Old Asset

Exchange valve of Old Asset

Entry

1

Rs.10,000

Rs.4,000

Rs.4,000

JV-1

 

New Asset A/c.         Dr.    

To Old Asset A/c.  

To Cash/Creditor A/c.                                 

 

 

10000

 

 

 

4000

6000

2

Rs.10,000

Rs.4,000

Rs.2,000

JV-1

 

New Asset A/c.         Dr.      

To Old Asset A/c.                   

To Cash/Creditor A/c.            

 

JV-2

P & L A/c.           Dr.        

Old Asset A/c.                          

 

 

10000

 

 

 

 

2000

 

 

 

2000

8000

 

 

 

2000

3

Rs.10,000

Rs.4,000

Rs.6,000

JV-1

 

New Asset A/c.         Dr.    

To Old Asset A/c.  

To Cash/Creditor A/c.  

 

JV-2

 

Old Asset A/c.           Dr.      

P & L A/c.                                   

 

 

10000

 

 

 

 

 

2000

 

 

 

6000

4000

 

 

 

 

2000

case of loss:-If value(old Asset)determined by vendor ,is less than wdv 
 
Asset a/c (new) ...........................Dr.       (with value of new1)
p & L a/c........................................Dr.       (amt with difference betwn wdv
                                                                     & dterined values by vendor)
         To Asset a/c                                      (at wdv)
         To cash a/c or vendor                       (if add. amt is paid or payable
                                                                     on exchange)
 
 
case of profit:-If value(old Asset)determined by vendor ,is more than wdv 
 
Asset a/c (new) ...........................Dr.           (with value of new1)
         To Asset a/c                                         (at wdv)
         To cash a/c or vendor                          (if add. amt is paid or payable
                                                                        on exchange)
         To P&L a/c                                             (amt with difference betwn wdv
                                                                         & dterined value by vendor)
 
 
 
I hope .....u would get it.........
Hey people thank u aaaaaaaaaaaaaal..................


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details