TREATMENT OF FIXED ASSET SOLD DURING THE YEAR IN BS

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Nishakar Sahoo (Querist)
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11 September 2009 Kindly some one guide me to treat the fixed asset sold during the year in the Balance Sheet and the corresponding depriciation calculation.

CP Ram

CP Ram (Expert)
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11 September 2009 Following will be the treatment for sale of fixed assets:

1) Credit fixed asset a/c with original cost.

2) Debit Provision for Depreciation ledger with the total amount of depreciation provided on such fixed asset upto last year.

3) Credit/(debit) profit/(loss) on sale of fixed asset to the p & l a/c.

4) Depreciation on such fixed asset should not be charged in the year of sales.