Depreciation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 August 2013
Car 2012-13
Opening WDV for two cars - 100000
Sold one Car - (50000)
Wdv for sec 32 - 50000
Depreciation @ 15% - 7500
CAR 2013-14
Please Calculate dep for 2013-14
Treatment for Quantum of dep for the car sold in 2012-13
Opening WDV for two cars - 100000
Sold one Car - (50000)
Wdv for sec 32 - 50000
Depreciation @ 15% - 7500
CAR 2013-14
Please Calculate dep for 2013-14
Treatment for Quantum of dep for the car sold in 2012-13
19 August 2013
50000-7500=42500 will be wdv for the year 2013-14
depreciation for the year 2013-14 = 6375
(Please use concept of Block of Asset)
depreciation for the year 2013-14 = 6375
(Please use concept of Block of Asset)
Message likes :
1 times
19 August 2013
WDV as on 31-3-2013 is 42,500 so you have to calculate depreciation @15% on 42,500 for income tax purpose.
During 2012-13 credit the sale value of the car to the CAR account(fixed assets account). In case if you sold such car for more than or lower than the book value of the car then such difference amount shall be credited or debited to the profit and loss account and the same shall be disallow or deduct at the time of preparation of computation of total income.
Entries for the sale of car
Cash/bank a/c dr (for total sale value)
To Car a/c (for Book value)
To gain on sale of car (For sale value - book value)
In case of sold less value than book value then
Cash/bank a/c dr (for total sale value)
Loss on sale of car a/c dr (for book value - sale value)
To Car a/c (for book value)
after that loss or gain on sale of car shall be transferred to profit and loss account.
In case if you want to WDV as per books and as per IT is same then you required to pass the following entry only
Cash/bank a/c dr (for sale value)
To Car a/c (for sale value).
OM SAI SRI SAI JAI JAI SAI
During 2012-13 credit the sale value of the car to the CAR account(fixed assets account). In case if you sold such car for more than or lower than the book value of the car then such difference amount shall be credited or debited to the profit and loss account and the same shall be disallow or deduct at the time of preparation of computation of total income.
Entries for the sale of car
Cash/bank a/c dr (for total sale value)
To Car a/c (for Book value)
To gain on sale of car (For sale value - book value)
In case of sold less value than book value then
Cash/bank a/c dr (for total sale value)
Loss on sale of car a/c dr (for book value - sale value)
To Car a/c (for book value)
after that loss or gain on sale of car shall be transferred to profit and loss account.
In case if you want to WDV as per books and as per IT is same then you required to pass the following entry only
Cash/bank a/c dr (for sale value)
To Car a/c (for sale value).
OM SAI SRI SAI JAI JAI SAI
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
