06 June 2014
i used to get confused regarding provision for depreciation and asset disposal.. can any1 pls guide me to understand what r dis n how it is calculated namely-
1) provision for depreciation
2) asset disposal
06 June 2014
Depreciation is caluculated on no.of days used for a particular asset . . Dr.DepreciationA/c Cr.Accumulated depreciation A/c
On asset disposal total asset should delete from books,,so . Dr.Buyer of our assetA/c(sale consideration) Dr.Accumulated depreciation(depreciation charged upto date of sale) Dr.Loss on sale of asset Cr.Fixed Asset(cost of asset) Cr.Profit on sale of asset
CAclubindia
