sale of asset

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Sandeep Kumar (Querist)
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16 November 2010 l have a car in my books.its book value is 378555 & i sold in rs.312500. can i claim depriciation on this car for 7 months.

i want to purchase new car .is it beneficial to show more loss on sold car. what is the impact of loss on balance sheet.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 November 2010 Company or proprietorship or partnership firm?

Sandeep Kumar

Sandeep Kumar (Querist)
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16 November 2010 partnership firm

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 November 2010 If new car is purchased in the same year then the block of asset does not cease to exist and hence the loss on sale of car will be added to the cost of new car and deprecaition will be allowable thereon.

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