Sale of motor car of a school

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".

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...

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.

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.

Hello Mr Sabyasachi Mukherjee,

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