treatment of profit on sale of fixed asset
This query is : Resolved
22 August 2017
journal entry & treatment of profit on sale of fixed asset
22 August 2017
Cash/Bank A/c Dr. xxxx
To Fixed Assets A/c xxxx
To Profit&Loss A/c xxxx
To Fixed Assets A/c xxxx
To Profit&Loss A/c xxxx
22 August 2017
Eg. Cost of fixed asset - Rs. 10 lakhs, accumulated depreciation - Rs. 4 lakhs, Sale price - Rs. 8 lakhs
1. Sale of Fixed Asset A/c Dr 10 lakhs
To Fixed Assets
2. Accumulated Depreciation Dr 4 lakhs
To Sale of Fixed Assets
3. Bank/ Cash/ Party Dr 8 lakhs
To Sale of Fixed Assets
The balance amount is the profit. Additionally you can file the below entry
Sale of Fixed Assets Dr
To Profit on Sale of Fixed Assets
1. Sale of Fixed Asset A/c Dr 10 lakhs
To Fixed Assets
2. Accumulated Depreciation Dr 4 lakhs
To Sale of Fixed Assets
3. Bank/ Cash/ Party Dr 8 lakhs
To Sale of Fixed Assets
The balance amount is the profit. Additionally you can file the below entry
Sale of Fixed Assets Dr
To Profit on Sale of Fixed Assets
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