Quires for accounting entry

This query is : Resolved

Tapash Kumar Biswas (Querist)
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02 May 2012 Dear Sir's

We hava a motor bike valued Rs.45000/- which is not taken into Account in F.Y 2010-11 and same has been sale to our staff with same value in current Financial year. The whole amount will be deducted from his salary by equal installment of Rs.3000/ per month.

Can anybody advise me, what's the entry I made in the books of accounts.

Thanks in advance for early reply.

Guest

Guest (Expert)

02 May 2012 Now that bike was not booked last year.. assumed that deprecaition is not charged on it. We have to capitalize the bike and than show it as a sale.

Bike A/c Dr 45000
To Vendor A/c 45000

Depreciation A/c Dr 500 (approx)(from date of purchase till date of sale)
to Acc Dep A/c 500

Acc Dep A/c Dr 500
Staff A/c Dr 30000
Loss on sale A/c Dr 14500
To Bike A/c 45000

As and when amt is recovered frm employee pass the below entry
Bank A/c Dr 3000
To Staff A/c 3000