sale of fixed assets

This query is : Resolved

sonu kumar (Querist)
Follow

26 August 2010 Sir,
co. have sold fixed assets according to valuation assets sold on profit ,so pl. guide me that what is accounting entry of sale , profit etc. & on dep. sch. i will less, assets total sale value or before profit value. pls guide me with exmaple.

CA Manoj Kumar Rai

CA Manoj Kumar Rai (Expert)
Follow

26 August 2010 Dear sonu,

If sales value of assets >w.d.v. of assets than profit
on other hand if sales value
Accounting Entries
I IN CASE OF PROFIT

Bank/Cash A/c Dr (Sales Value)
To Assets A/c (WDV)
To Profit on sale of assets (Sales value-WDV)

II IN CASE OF LOSS

Bank/Cash A/c Dr (Sales Value)
Loss on sales A/C (WDV-sales value)
TO Assets A/C (WDV )

Please charge the depreciation on resale date.