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)
Menu
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
Recent Topic
- Ca pratik takkar imp list
- TDS EXECESS AMOUNT ADJUSTMENT
- What's the ONE thing about GSTR-2B / IMS reconcili
- Is GST Registration Mandatory for Freelancers in I
- ITR TO FILE
- Shift of Place of Business from one state to anoth
- Form 10E u/s. 89(1). Need clarification because Ex
- Long Term Capital Loss - Tata Capital unlisted sha
- Section 54F deduction - GST and Stamp Duty cost wh
- Professional Crossed 20 Laks in Dec 26 Failed to T
Related Topics
CAclubindia
