Sale of Machinery Entry

is ur firm dealind in sale of machinery?

If yes then Machinery A/c should be opened under Stock item & normal sale entry should be passed.

If no then Machinery A/c will be under Fixed Asset Head ,& Rs. 500000 should be deducted from its Block bcoz u said that some part of the machinery has been sold so block exists.

Dear Sir,

We have purchased 5 unit of Assets on financed, out of two we sold 2 unit assets to another on finance, now the 

question are,

1,  how to make entry  for expense interest on finance of Two Sold Assets because we also sold the Assets on finance.

2, How to execute other entry

Thanking you

Rajesh Chitroda

Dear shamita.. at the time of making the entry you have to alter the machinery A/c under make it under the sales A/c for the purpose of VAT return and changed the A/c back to Fixed Assets later on. even we had to face this situation and I think there is no other way available right now.

Dear Shamita and Ashish,

You can also open a new account namely "Fixed Assets Sales account" in the group of sales and then pass the following entries: (assuming vat Rs. 50000)

Buyer-Dr. 550000

    To Fixed Assets Sales Account 500000

    To Vat                                                50000

Fixed Assets sales account 500000

    To Machinery                       500000

I agree with Mr. Praveen Miglani