Treatment of sale of asset under companies act

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SURESH KUMAR P

article

26 Points Posted on 10 March 2012

Dear members

what is the depreciation rates applicable under companies act and what is the procedure to calculate amount of depreciation under companues act.

to be specified company sold an asset for Rs. 22500/- and wdv of such asset as on 01-04-2011 is 21000/-

please let me know how to calculate dep under companies act and treatment of sale/ loss on such sale

Replies (2)

CA Deepesh Ruhela

Keen to Learn

1711 Points Posted on 10 March 2012

calculation of depreciation on day basis, if asset sold during the year.

Treatment in books:

Bank A/c Dr. (Sale Proceeds)

Loss on Sale A/c Dr. (if any)

To Asset (WDV till the date of Sale)

To Profit on Sale (if any)

Profit / Loss on Sale of asset = Proceeds from Sale of Asset - WDV till the date of Sale

Anooj

Chartered Accountant

506 Points Posted on 10 March 2012

Originally posted by : Deepesh Ruhela
	calculation of depreciation on day basis, if asset sold during the year. Treatment in books: Bank A/c Dr. (Sale Proceeds) Loss on Sale A/c Dr. (if any) To Asset (WDV till the date of Sale) To Profit on Sale (if any) Profit / Loss on Sale of asset = Proceeds from Sale of Asset - WDV till the date of Sale