Sale of Asset

This query is : Resolved

NIRAV DOSHI (Querist)
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28 June 2010 Hello,

Original cost of asset sold :Rs415000
WDV of asset sold as on :Rs.334092
Asset sold for Rs 25500/-

the depreciation has been provided as per Companies Act,1956

Will the loss on sale of asset be allowed as per Companies Act for the company?if yes,what would be the amount of Loss?

Thanks & regards

Rasesh

Rasesh (Expert)
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02 July 2010 In the profit and loss account of the Company as per the companies act, there will be a loss of Rs. 3,08,592.

As per Income tax, the depreciation is considered on block of assets concept and hence the position will differ.