26 June 2012
if a car is sold purchased 4 years ago is sold for rs 180000.and loss on sale of asset is 20000.how we trea it as per company act in preparing depreciation schedule as per company act.how mch to be deductd from from gross block,wdv or original value or sale value
1. Depreciation on motor Vehicle A/c DrXXX To Provision for Depreciation XXX Note:-Depreciaiton till the date of sale to be provided)
2. Cash/Bank A/c Dr 180000 Loss on sale of FA 20000 Provision for depreciation XXX To Motor Vehicle XXX Note:- Cost of motor Vehicle and Provision for depreciation related to motor vehicle will get removed on sale of car.
CAclubindia
