Provision for depreceation
This query is : Resolved
10 May 2011
what is accounting treatment provision for deprecation when asset is sold?
10 May 2011
Provision of depreciation will be adjusted with the costs to arrive at the net profit orloss on sale of asset. The accounting entry will be:
Bank A/C Dr.
To Fixed assets A/C (Cost)
To Provision for depreciation A/C
To Profit on sale of assets A/C (In case of profit)
Bank A/C Dr.
To Fixed assets A/C (Cost)
To Provision for depreciation A/C
To Profit on sale of assets A/C (In case of profit)
10 May 2011
according to me above accounting entry is wrong.
provision for depreciation transfered to related fixed assets a/c to the extent of assets sold.
provision for depreciation a/c Dr.
to fixed assets a/c
provision for depreciation transfered to related fixed assets a/c to the extent of assets sold.
provision for depreciation a/c Dr.
to fixed assets a/c
10 May 2011
sale of assets - Accounting Entry
Bank a/c Dr.
provision for depreciation a/c Dr.
loss on sale of assets a/c Dr.
To profit on sale of F.A. a/c
To fixed assets a/c
Bank a/c Dr.
provision for depreciation a/c Dr.
loss on sale of assets a/c Dr.
To profit on sale of F.A. a/c
To fixed assets a/c
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13 May 2011
I agree to it
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