Seller had JCB/Machine financed by Bank, he sale it and takes cheque from purchaser in the name of financed bank and deposited direct to loan a/c for repayment of rest loan amount
what will be the journal entry for sale of fixed assets (JCB/Machine)
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Journal entry for sale of fa
Replies (10)
we can pass
Loan Dr
to Fixed Asset
OR Party Dr
To Fixed Asset
Loan Dr
To Party
bank A/C
To machine A/C
loan A/C
to Bank A/C.
To machine A/C
loan A/C
to Bank A/C.
Entry of Loan for Machinery would be:-
Machinery A/c-----------------Dr.
To Bank/Cash
Bank A/c------------------------Dr.
To Loan
OR
Machinery A/c-------------------Dr
To Loan
At the Time of Sale of Machine at your case Just Reverse the Entry:-
Loan A/c---------------------------Dr.
To Machinery
loan a/c Dr
to machine a/c
to machine a/c
Loan a/c dr
To party
Party dr
Machine a/c
Depreciation reserved dr
Machine A/c
loan a/c Dr
bank a/c Dr
p&l a/c(if loss) dr
bank a/c Dr
p&l a/c(if loss) dr
to machinery a/c
to p&l a/c (if profit)
to p&l a/c (if profit)
1. Bank Dr.
To JCB Machine
2. Loan a/c Dr.
To Bank
FIRST ENTRY IS WRONG, SINCE CHEQUE IS DIRECTLY DEPOSITED INTO LOAN ACCOUNT. SINCE FIRST ENTRY IS WRONG, IT AFFFECTS ON SECOND ENTRY ALSO.
Dear Member following entry should be passed for sale of Machinery
Bank A/c Dr.
To Machinery A/c
Loan A/c Dr.
To Bank A/c
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