10 February 2015
All Experts- Plz help We want to sale machinery which we had imported from China. But problem is S.P of this machinery is less than cost i.e there is Short term loss. Sales value is not covered even depreciated value (Cost - Depreciation = WDV). So what accounting entries I have to pass when sales value of machinery not covered wdv
10 February 2015
sale of depreciable asset will result in short term capital gain or loss. Here the sale value is less than WDV , there is short term capital loss. Loss on sale of asset has to be shown in P&L , and while filing IT it has to be treated as short term capital loss. You can take depreciation depending on the date of disposal.
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