Profit & loss on sales of fixed assets

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Rakesh Sharma (Querist)
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11 January 2014 We are manufacturer & Pvt. Ltd. co. Please solve the below query :-

- Purchase of Machine :-
Dtd. 02.04.2012 of Rs. 483051.00

- Sales of above machine :-
Dtd. 22.06.2013 of Rs. 510000.00

- Rate of Depreciation as per Co. Act (WDV) 13.91%

My question is that how to calculate Profit on sales of above machine. What will be the Profit?

Thanks.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 January 2014 Cost price = 4,83,051
Less: Depreciation 12-13 = 67,394
Less: Depreciation 13-14 = 13,223

WDV as on 22/6/13 = 4,02,434

Gain = 5,10,000 - 4,02,434 = 1,07,566

Rakesh Sharma

Rakesh Sharma (Querist)
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11 January 2014 Sir, how many days in 2012-13 & 2013-14 you have taken for calculation?
I think dep. for 2012-13 is = 67008.00
((483051*13.91%)*364/365)
& for 2013-14 is = 13001.00
((416043*13.91%)*82/365)

Please clear me if I wrong.

Thanks.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 January 2014 Yes your calc is correct.