08 September 2016
a proprietor have wdv of car as on 31.3.2015 is Rs.134854.3 and during the year 2015-16 he exchange the old car for Rs.115000 and purchase new car total amounted Rs.1057517(including exchange value).what should be the depreciation to be accounted as per income tax act ? and further what should be the accounting entry for the loss on sale of car?
08 September 2016
Dear Alkit,
There is concept of Block of assets in caculation of depreciation.
reduce the sold price from block of assets and add new purchase value (actual).
charged full year dep for old balance less sold Vale and charge Dep on new car as per purchase date.
Hope your query is resolved
CAclubindia
