Depreciation on 12-02-2018 at sale of old car

This query is : Resolved

S ELAVARASI (Querist)
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11 July 2018 Dear Sir / Madam.,

A Car's opening balance on 01/04/17 Rs. 227,024. The Car sold on 12/02/2018 Rs. 210,000. (Exchange and Purchase New Car).

My Questions :
1. How to provide Depreciation for the Old Car and New Car?
2. How to account this Sale of Old Car?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 July 2018 For income tax purpose,

To the opening balance add purchase cost of new car , deduct sale value and
depreciate the balance amount.

For accounting purpose

Credit 2,10,000 in the car a/c having opening balance .
Debit new car a/c with the amount paid plus 2,10,000.

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S ELAVARASI

S ELAVARASI (Querist)
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12 July 2018 Thank You sir...

Can I depreciate Whole year or 11 months...?

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