We purchased a printer for ₹110,000 on May 30, 2018, and depreciation was applied on that asset until now. Last month, we replaced the old printer and purchased a new one. The old printer was valued at ₹30,000 by the buyer, who also sold us the new printer.
The cost of the new printer is ₹118,000, as per the tax invoice issued, but a discrepancy was observed. The seller filed the GST returns with the actual sale value at ₹92,576, whereas the invoice was issued for ₹118,000.
The old machine's purchase cost has been adjusted in the GST returns filed by the seller.
How should I account for the ₹30,000 sale amount in the books? Should I treat ₹25,423 (without tax) as income from the sale of an asset and collect the invoice at the original value? Or what would be the correct process in this regard?
Kindly advise.
CAclubindia
