capital gain
This query is : Resolved
27 March 2010
A transport company purchase 4 trucks and sold one in the same year. while calculation capital gain/loss can he calim deprecion also.
say,
date of purchase: 30/05/2009
cost : 575000
date of sale: 25/02/2010
sale proceeds : 520000
please calculate cap gain /loss.
Thanks
say,
date of purchase: 30/05/2009
cost : 575000
date of sale: 25/02/2010
sale proceeds : 520000
please calculate cap gain /loss.
Thanks
27 March 2010
Bieng a case of depreciable asset with same rate of depreciation you are goverened by the concept of "block assets" and therefore sale of individual assets shall go to reduce the WDV and depreciation shall be available on the balance.
siva2082yahoo.com
siva2082yahoo.com
27 March 2010
then how to record this entry in books.shall we just credit assets with sale value.
27 March 2010
For the purpose of recording it in the books, the Profit /loss on the sale of the assets is to credited or debited to the books. Depreciation to be provided for the truck sold for the period of using it in business.
Profit/ loss = sale value -( Cost of asset - depreciation charged in the p/l)
Sivdas is correct as regards for Income Tax purpose.
Profit/ loss = sale value -( Cost of asset - depreciation charged in the p/l)
Sivdas is correct as regards for Income Tax purpose.
28 March 2010
You debit the cost of all the asset to one block of trucks or the block carrying same rate of depreciation. Then credit the sale proceeds to that common account. Claim depri on the balance...OK?
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