Hi
going forward to the above query which was about p/l on sale of PPE, if plant is having
cost 20,000
Book value 14,000
sale value 18,000
in this case, sale value is less than cost price so my question is this nothing will be transferred to capital reserve as sales price is less than cost.
could you please journalise the same for my reference ..
Menu
P/l of sale of fixed assest
Replies (2)
First, you have to identify what policy the company is following: cost or revaluation model. From the above information it looks like assets are valued at cost. So, the book value referred to here is also the market value of the asset. So, I remember disposal of non current assets are measured at lower of carrying amount/book value or FVLCD. Here, Cost is lower. Then the entries are as follows:
Bank a/c 18,000₹
To Asset disposal a/c 14,000₹
To gain on disposal a/c 4,000₹
Asset valuation is entirely covered by AS 10
Recent Topic
- TIS Glitch Alert : inflated summary
- IT returns of partners
- Challan status in Payment Failed but amount deduct
- Sec 54 exemption
- Query regarding retirement benefits
- TDS Payment and filing
- Capital gains exemption under sec 54
- Revamped traces portal, conso file download failed
- Due date of ITR for Option Trader
- Cancelled invoice entry
Related Topics
CAclubindia
