Sale of a fixed asset
This query is : Open
09 September 2010
When in a block of asset, a fixed asset is sold, we will not reconise profit or loss on sale unless if its the only asset in the block.Right?If there are more than 1 asset in a particular block, and an asset is sold.What entry shall we pass in the books to make it in accordance with block of asset concept?Kindly guide...
Urgent
Urgent
10 September 2010
See... if its a company , the entry will be passed as per companies act, where profit / loss on individual asset will be calculated.
But in the block of asset concept, the entry will be :
Cash / Bank Dr.
To Asset head Cr.
But in the block of asset concept, the entry will be :
Cash / Bank Dr.
To Asset head Cr.
10 September 2010
Entry will be simply for the amount recd as sale proceeds.
12 September 2010
But the difference b/w the wdv & the sales proceeds cannot be shown in the fixed asset schedule as closing wdv, right as the asset is sold?So how should it be presented in the audit report and the entry to be passed in the books?
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