Sale of machinery
This query is : Open
18 August 2011
Pls tell me what r the entries for machinery sale? I have not maintain provision for dep a/c.
Origianl Cost 1589563
Loss on sale 505298
Received from party 200000
Balance amout 884265 CA showed in Schedule D in Adjustment for sale column.
I don't understand where to adjust
Pls tell me what r the entries for machinery sale? I have not maintain provision for dep a/c.
Origianl Cost 1589563
Loss on sale 505298
Received from party 200000
Balance amout 884265 CA showed in Schedule D in Adjustment for sale column.
I don't understand where to adjust
20 August 2011
Depreciated Value Of Assets At Time Of Sale =Rs 725298.00
Depreciation Amount Till Sale =Rs884265.00
Sale Consideration =Rs 200000.00
Loss On Sale =Rs 505298.00
If All The Above Information Is Right Then There is No Need For Any Adjustment As You Just Have To pass A Simple Journal Entry & That is:
Bank A/C Dr-200000.00
P/L A/C Dr-505298.00(Loss On Sale)
Machinery A/C Cr-725298.00
884265.00 Is Nothing But The Depreciation Amount That You Have Deducted From Assets Every Year Here It Looks That You Have Not Transferred The depreciation Amount To Profit & Loss Account.
For Checking Your Account You need To First Check The Ledger Of That machinery & Depreciation
On Purchase:
Machinery dr-1589563.00
Bank/Creditors Cr-1589563.00
On Sale As Consolidated Basis( As Dep. Rate is Unknown)
A.
Bank A/C Dr-200000.00
P/L A/C Dr-505298.00(Loss On Sale)
Depreciation A/C Dr-884265.00
Machinery A/C Cr-1589563.00
B.
P/L A/C Dr-884265.00 ( Dep. Transferred To P/L A/C)
Depreciation A/C Cr-884265.00
Depreciation Amount Till Sale =Rs884265.00
Sale Consideration =Rs 200000.00
Loss On Sale =Rs 505298.00
If All The Above Information Is Right Then There is No Need For Any Adjustment As You Just Have To pass A Simple Journal Entry & That is:
Bank A/C Dr-200000.00
P/L A/C Dr-505298.00(Loss On Sale)
Machinery A/C Cr-725298.00
884265.00 Is Nothing But The Depreciation Amount That You Have Deducted From Assets Every Year Here It Looks That You Have Not Transferred The depreciation Amount To Profit & Loss Account.
For Checking Your Account You need To First Check The Ledger Of That machinery & Depreciation
On Purchase:
Machinery dr-1589563.00
Bank/Creditors Cr-1589563.00
On Sale As Consolidated Basis( As Dep. Rate is Unknown)
A.
Bank A/C Dr-200000.00
P/L A/C Dr-505298.00(Loss On Sale)
Depreciation A/C Dr-884265.00
Machinery A/C Cr-1589563.00
B.
P/L A/C Dr-884265.00 ( Dep. Transferred To P/L A/C)
Depreciation A/C Cr-884265.00
27 September 2011
how come the deprecition can be 8 lakhs in such case, even there is no use of original cost, it may be opening, i believe information is wrongly posted
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