Sale of an asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2010 Situation:

A firm has the following assets in its books:

Car 1 - WDV on 1.4.2009 - 1 lac
Car 2 - WDV on 1.4.09 - 3 lac
CAr 3- WDV on 1.4.2009 - 2 lac

All the 3 cars are in the name of the partner but shown in the books.

car 3 is sold during the FY 2009-10 for Rs.5.50 Lacs.

Pls tell me how to deal with this?

What will be the accounting treatment?How to deal in computation for the AY 2010-11?

pls help.Urgent

Akhil Agrawal

Akhil Agrawal (Expert)
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21 July 2010 The WDV after the Sale of Assets will bcum Rs. 50000

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2010 Csn u tell me how the assets shall be shown in the Balance sheet schedule of fixed assets?I mean to say we show the assets seperately.ie. Car 1 Wdv - dep = wdv on 1.4.2009 like wise.

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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27 July 2010 1. For Balance Sheet purpose, you have to write off all 3 cars & account Rs. 50,000 as Loss on sale of car.

Assuming that WDV is arrived at, after calculating depreciation at the rates prescribed under the Income tax Act :

2. For tax purpose, Rs. 50,000 Loss on sale of car shall be added back to the income. If there is no further assets under the block motor car, this needs to be shown as Short Term capital Loss.