URGENT :Treatment of asset sale under IT act & Co's Act ?

This query is : Resolved

CMA. Subhash Kumar Jha (Querist)
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10 April 2009 Sir,

We have salvaged a mobile purchased in 2006-07. Purchase cost was Rs. 5449/- & salvage value is Rs. 500/-

How to treat the depreciation / loss / salvage value in both IT Act & Co's Act.

This is urgent.

Thanks

Subhash

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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10 April 2009 IT act :

Just credit the sale value to the Block.

Comanies Act.

Remove purchase cost of Rs.5449 from cost block.

Depreciation - calculate upto the date of sale. For Eg. 5100. Remove the same from the depreciation block.

Profit on sale of assest 500 - 349 (5449-5100) = 151 . Pass journal entry for profit.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Querist)
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10 April 2009 Thanks

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