Sale Of fixed assets in a block


Student

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
 
Reply   
 

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)
 
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Student

Tq,for your reply
but some assets are left in block of assets: 
I think should be reverse !!!🤔
 
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ARTICLE

charge depreciation on 42700.. as block and wdv both exist, no capital loss

Total likes : 4 times

 
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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.
 
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same treatment in both cases
 
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student

totally agree with ankur sir
 
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Student

Tq for all your answers.
 
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Ca final

Agreed with ankur

 
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Student

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??
 
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