Deprecation on car

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2013 Dear Sir,

As per books we have sold a old car 28.09.12 for 1,10,000/- and got a new car on 29.09.2012 for 787173/- F.Y.2012-13 please guide for deprecation entries.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 June 2013 both are different transactions pass different entries for sale and purchase

For sale

Dr: Bank
Dr:Loss on sale (Incase loss)
Dr: Prov.depreciation
Cr: Car old a/c

For purchase

Dr: Car new
Cr: Bank a/c or vendor a/c