28 April 2011
Dear Sir, During the financial year, we have purchase an asset. We availed an offer to exchange an old asset in our books for the new one purchased. New asset = Rs.50,000/-
Less: Offer for exchange of old asset = Rs.10,000/- =========== AMOUNT PAID = Rs.40,000/- ===========
The book value of old asset (referred above) is Original cost = Rs.3,000/- Less: Dep Reserve = Rs.2,999/- ---------- WDV = Rs. 1/- ==========
Please advise the journal entry to be passed on the above. Regards S. Anand
CAclubindia
