Ravindar (CA Final Student) 06 April 2013
I could not able to find any option to respond to MFJD13, hence I am replying here.
"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.""
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)