Fixed Assets

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Reeji Rakesh (Querist)
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11 August 2008 Hai,

I have one doubt about fixed asset buyback. We have purchase a new EPBX and sale the old one ie in the buy back scheme. Actual value of New set Rs.28,000/-, Old set Rs.10,000/- the net amount, actual they billed in the invoice Rs.18,000.

What was the treatment in our books of accounts?

Whether it is true the invoice show only the net value ? or how it show?

Shall we accounted the net amount?

Pls help me its urgent............

CHEZHIYAN

CHEZHIYAN (Expert)
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20 August 2008 yes it seems that it shows only the net value..
but read the invoice carefully ... it'll specify the full value and reduce for the value it has taken the older asset and finnally it may be showing the net payable vakue

you have to capitalize with the whole value of 28000 and not 18000

you have to account for sale of fixed asset for 10000 not book the loss or profit as it may be