Sale of fixed assets

Originally posted by : ASHUTOSH PANDEY
	Dear All, I need your help to pass an entry of Fixed assets sale. If we purchase a fixed assets on 1.12.2011 At Rs.1,00,000/-(One lakh ) . After 2 yrs depreciation of Rs.40000/- as on 31.12.2013.It is sold at the price of Rs.65000/-. Please suggest me entry for this Sale. Regards Ashutosh.

Hi Ashutosh,

Assuming that depreciation have been booked as expenses and not transferred as provision. The value of Asset on the day of sale is Rs. 60,000.00 and the sale proceeds is Rs. 65,000.00 so the entity have made a profit of Rs,. 5000.

The Entry would be

Bank A/c dr. 65000

     To Asset  A/c 60000

     To Profit on Sale of Asset 5000

Thanks

Bank  A/c           Dr        65,000

Depreciation        Dr       40,000

    To Assets                             100,000

    To Profit on sale of Assets          5,000

hi

it depends on the situation , whether the asset sold belongs to the block of assets or individual asset, if asset is sold sold from block of assets, then dont book profit upto the WDV of the block of assets.

but in case of individual asset you can book profit, and the entry will be 

Bank -Dr 65k

to asset 60k

to profit  05k

Sale of fixed assets on credit not recived money at that time receving money at every  month sold the vehicle of 500000 and recived money per month 50000 so what will be group and entry