a school having a motor car wdv on 31-03-2022
rs 223607
sold on 21-11-2022 for rs 200000
how to pass journal entry for the transaction
and can depreciation will be provided till 21st November 2023
Menu
Sale of motor car of a school
Replies (9)
Quick Summary
Yes, Depreciation will be provide.
After that book the car's sale value Rs.200000/-.
After (Depreciation Value + Sale value) these value balance amount will be book as "LOSS ON SALE OF CAR".
After that book the car's sale value Rs.200000/-.
After (Depreciation Value + Sale value) these value balance amount will be book as "LOSS ON SALE OF CAR".
Bank A /c Dr
Depreciation A/c Dr
Loss on Sale ( car) A/c Dr
To Motor Car A/c Cr
( Motor Car sold )
Loss on Sale ( car) A/c will be transferred to Income & Expenditure account.
Income & Expenditure A/c Dr
To Loss on sale ( car) Cr
( Loss transfer entry)
Also transfer Depreciation to Income & Expenditure Account
Income & Expenditure A/c Dr
To Depreciation A/c Cr
( Depreciation transfer to Income & Expenditure Account )
How to pass journal entry for the transaction :
1St provide Depreciation:
Depreciation A/c Dr - XXXX
To Motor Car A/c - XXXX
2nd Provide Sale:
Bank A/c Dr- XXXXXX
To Motor Car A/c - XXXXXX
3rd Provide Balance Transfer To Expenditure Account as it's to Loss Account:
LOSS ON SALE OF CAR A/c Dr - XXXX
To Motor Car A/c - XXXX
The journal entries are made then the car account as ZERO...
1St provide Depreciation:
Depreciation A/c Dr - XXXX
To Motor Car A/c - XXXX
2nd Provide Sale:
Bank A/c Dr- XXXXXX
To Motor Car A/c - XXXXXX
3rd Provide Balance Transfer To Expenditure Account as it's to Loss Account:
LOSS ON SALE OF CAR A/c Dr - XXXX
To Motor Car A/c - XXXX
The journal entries are made then the car account as ZERO...
Dose not make any difference, if you pass combine entry or single single entries, Motor Car account going to close in both the way .
Yes, You are Correct.
But, I'm not saying any difference in this both way as Single Single entry or Combine entry.
But, I'm not saying any difference in this both way as Single Single entry or Combine entry.
Lower of carrying amount and sale value and CA has depreciation but fair value is usually lower than ca. It could have been higher of ca or sale value
Raja
first you hv to provide for the depreciation..
1. depreciation Dr.
provision for depreciation cr.
2. provision for depreciation Dr.
motor car cr.
3. rest is OK.
except depreciation to be charged to profit and loss account.
first you hv to provide for the depreciation..
1. depreciation Dr.
provision for depreciation cr.
2. provision for depreciation Dr.
motor car cr.
3. rest is OK.
except depreciation to be charged to profit and loss account.
Hello Mr Sabyasachi Mukherjee,
Are You reply to Me or Query...???
If me then its okay, I will try to understand your reply....
But,
If You note or type any name then put "Mr" before the name if You are professional...
Otherwise no need...
Are You reply to Me or Query...???
If me then its okay, I will try to understand your reply....
But,
If You note or type any name then put "Mr" before the name if You are professional...
Otherwise no need...
Recent Topics :
- Itr 4 problem
- Capital Gains Mismatch Due to Sale Agreement in FY
- REGARDING NRO INVESTMENT IN SHARES OF DOMESTIC COM
- DTAA benefits
- SUPPLEMENTARY AGREEMENT FOR ADDING A PARTER IN TN
- Part availmement of ITC in case of rejection of su
- Due date for itr 5 no audit with loss for fy 25 26
- Capital Gains Mismatch AIS
- Inward E-way bill from Tally Prime 7.1
- Query regarding exemption under Section 10(10AA) &
Related Topics :
CAclubindia
