Sold vehicle

A/c entries 508 views 3 replies

I had a car of rs.3,50,000/-. I had made entry of it under group fixed asset with vehicle name. Now i have sold it in rs.1,50,000/-. I have loss of rs.2,00,000/-. Which type of entry should do of rs.2,00,000/-. & under which group?

Replies (3)

Ledger should be "Loss from sale of Car" under group of "Indirect Expense"

Dear Kaver 

 

once an assets enter into a block of assets under fixed assets, it looses its individual identity 

hence when you sold out car for INR 1.5 lac there is no need to recognize and loss or gain.

 

simply deduct 1.5 lac from total value of block of assets and on balance charge dep @ 15% 

 

Thats it

Dear

To find out theBook Value Depreciation has tobe considered for  the period viz., Date of Purchase to Date of Sale. If the Amount recd > WDV = Profit on Sales of Asset If the Amount received < WDV = Loss on Sales of Asset.

NOTE: TAX (VAT) portion has to be considered & Tax Invoice to  be raisedotherwise penalty willbe leviedby Sales Tax Dept with Interest. Hence Invoice can be raised WDV + Tax = Realisation Value (including Tax which has to be apid to the Dept)


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