Reply to mjdf13


Ravindar (CA Final Student)     06 April 2013

Ravindar
CA Final Student 
 1 likes  84 points

| My Other Post

I could not able to find any option to respond to MFJD13, hence I am replying here.

Question:

"SIR , MY FRIEND WORKING IN DUBAI, A VEHICLE WHICH WAS PURCHASED NEARLY 10 YRS BACK NOW ITS IS SOLD FOR 500,000 DIRHAMS, AND BANK A/C CREDITED WITH 5,00,000. THERE IS NO INFORMATION ABOUT THIS ASSET AND NO DEPRECIATION IN THE RECORDS, SO WHICH A/C TO BE DEBIT PLZ HELP THIS GUY,

 

THANKS IN ADVANCE FOR ALL PROFESSIONS WHO WILL ANSWER THIS.""


$(document).ready(function() { $('#msgthnk1159944').load('get_thanks.asp?msg_id=1159944'); }); As per me even, the accounting entry should be

Bank A/C Dr                       500,000

  TO Vehicle A/C                                     1

  To P& L A/C                                         499,999

(Being asset sold at a profit and the asset WDV noted at nominal value)

As the asset purchased 10 years back and in 10 years 100% might have depreciated and nominal value of the asset to be consdered as 1)

 




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