schedule for fixed assets

Dear Bhavna,

While preparing Schedule of Fixed asset as per Companies Act, sale of asset is shown as follows:

For simple understanding, lets take an example

Suppose a company is having only a single asset (Furniture), the gross value of which as on 31.03.2009 is Rs. 50000, Accumulated depriciation as on 31.03.2009 is Rs. 40000. The asset was sold during the year on 28.05.2010 for Rs. 5000, the depriciation on asset till 28.05.2010  Rs. 600(assumed, in real situation depriciation is calculated on no. of days basis).

Before Schedule Lets See the entry of sale of fixed asset in books of account

Bank A/c .............................................Dr. Rs. 5000

Accumulated Depriciation A/c ........Dr. Rs. 40600

Loss on sale of Asset A/c................Dr. Rs. 4400

         To Furniture A/c                               Rs. 50000

Now,

Schedule of Fixed Asset: