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Sale Of fixed assets in a block

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Student
1511 Points Posted on 09 July 2019
Sale of fixed assets in case if some assets exist in block.

For example:
Opening value of block of P&M (15%) =392,700
One of P&M sold for Rs.350,000/- of which WDV is Rs.361,250/-


What is the Treatment of Depreciation and capital gains/loss

1.In Partnership Business
2.In Company
6 Reply Share Follow
On 09 July 2019 at 23:50 Report
Replies (10)
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Accountant
4533 Points Posted on 10 July 2019
In case of company-
depreciation will charged on closing WDV (392700-350000=42700).

In case of partnership-
Depreciation will charged on (392700-361250=31450) And loss will booked for (361250-350000=11250)
19 Reply
On 10 July 2019 at 00:06
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Student
1511 Points Posted on 10 July 2019
Tq,for your reply
but some assets are left in block of assets: 
I think should be reverse !!!🤔
6 Reply
On 10 July 2019 at 00:15
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ARTICLE
95 Points Posted on 10 July 2019
charge depreciation on 42700.. as block and wdv both exist, no capital loss
2 Reply
On 10 July 2019 at 00:24
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Accountant
4533 Points Posted on 10 July 2019
I have already told the treatment of each and everything as per your question. Charge depreciation on the remaining block of asset in case of company and in case of partnership do the treatment as per the above reply.
19 Reply
On 10 July 2019 at 00:25
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Student
63 Points Posted on 10 July 2019
same treatment in both cases
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On 10 July 2019 at 00:36
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student
408 Points Posted on 10 July 2019
totally agree with ankur sir
1 Reply
On 10 July 2019 at 08:39
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Student
1511 Points Posted on 10 July 2019
Tq for all your answers.
6 Reply
On 10 July 2019 at 08:42
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Ca final
1767 Points Posted on 10 July 2019

Agreed with ankur

1 Reply
On 10 July 2019 at 08:59
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Student
1511 Points Posted on 10 July 2019
In partnership, profit/loss on sale should not be shown in p&L.
In company , profit /loss on sale can be shown in p&L.
In both cases no capital loss.
Is it Correct??
6 Reply
On 10 July 2019 at 09:24
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93 Points Posted on 13 July 2019
No capital loss since block still exists
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On 13 July 2019 at 08:03


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