22 October 2010
There is no specific method for preparing accounts of Proprietor,even though we will calculate depreciation and follow the method as specified in income Tax Act
23 October 2010
Sir, Keep separate ledger accounts for the three machines.If A is sold fully for a profit transfer the profit to P and L a/c as income and the other two machines will continue to be in the balance sheet.
23 October 2010
Keep separate ledger accounts for the three machines.If A is sold fully for a profit transfer the profit to P and L a/c as income and the other two machines will continue to be in the balance sheet.
23 October 2010
My Dear, Your query was regarding the accounting entries so only Tax angle was untouched.
If you want the answer in IT view point, the other two assets will be in the books as mentioned earlier and the Block of assets concept is only for IT purpose. You need not pay capital gain tax since your balance of the block becomes nil. regards sivasankar advocate
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