income tax

on sale of motor car

Bank A/c   Dr

to Motor Car

( Being Motor Car Sold)

in case of Depreciation

Depreciation A/c Dr   15000

to Motor Car                15000

( Being Depreciation Provided @ 15% for whole year)

 Motor Car A/c Dr      15000

to Profit & loss A/c     15000

( Being Profit on sale of vehicle accounted for)

Depreciation is provided @ 15% coz car is sold after a period of 181 days.

Hope these entry clear ur doubt.

regards,

ratan