sale of fixed asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2011 suppose
asset's Historical cost-- 100000.00
Provision For depreciation- 25000.00
WDV as on 01.04.10-- 75000.00
Asset is sold for --- 120000.00
What should be the accounting treatment in the book of account And whether capital reserve arise for rs 20000.00 ?

Guest

Guest (Expert)

13 July 2011 For Single Asset:

Bank A/c Dr…………………………..120,000
To Fixed Asset……….75,000
To P/L Account………..45,000

For Block of Assets:

Bank A/c Dr…………………..120,000
To Fixed Assets A/c……….120,000