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.
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.
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?
CAclubindia
