Dear All,
as per AS 10 Accounting for Fixed Assets states that
14. Retirements and Disposals
14.1 An item of fixed asset is eliminated from the financial statements on
disposal.
14.2 Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their net book value and net
realisable value and are shown separately in the financial statements. Any
expected loss is recognised immediately in the profit and loss statement.
14.3 In historical cost financial statements, gains orlosses arising on disposal
are generally recognised in the profit and loss statement.
suppose one asset is in the register with WDV zero
ie cost and accumulated depreciation is Zero
i sold that asset for 1000/- how i will account this ?
wheher it is a profit on sale of fixed asset or a scrap sales?
the asset is still in the FA register
please post your comments with proof
regards,
Varun
CAclubindia
