AA-60 How to Record Replacement of Fixed Assets With New Assets

Response awaited from all respected members. 

debit new laptap cost credit old laptap sale account and Bank account and P & L account (with difference amount of new and old laptop cost)

Originally posted by : Rama chary Rachakonda
	debit new laptap cost credit old laptap sale account and Bank account and P & L account (with difference amount of new and old laptop cost)

Dear Rama Chary Rschakonda,

Thanks for your informative reply and your precious time to reply my above query.

As per your reply, I made below journal entries for using my above mentioned example. I really appreciate if you please confirm that below entries are correct:

New Laptop Dr. 35K

Loss on Sale of Assets DR.15K

Bank Cr. 20K

Old Laptop Cr. 30K

Originally posted by : My Videos
	Originally posted by : CA Rajat Gupta My opinion is that you should record the new laptop at its fair value irrespective of the selling price and cash paid on the older one. The net value in the transaction can be recorded as profit/loss. Hope this works! Dear Rajat Gupta Sir, Thanks for your valuable reply. Please let me know if I booked fair value of laptop (as per my example mentioned above mentioned) which account should be credited ? because as per my above mentioned example new laptop value is 35K whereas we paid cash 20K so in which account difference amount 15 will be recorded ? Further, I really appreciate if you help me to inform the procedure of recording old laptop as per my above mentioned example.

Dear Rajat Gupta Sir,

Your kind response awaited.

Originally posted by : My Videos
	Originally posted by : My Videos Originally posted by : CA Rajat GuptaMy opinion is that you should record the new laptop at its fair value irrespective of the selling price and cash paid on the older one. The net value in the transaction can be recorded as profit/loss. Hope this works! Dear Rajat Gupta Sir,Thanks for your valuable reply. Please let me know if I booked fair value of laptop (as per my example mentioned above mentioned) which account should be credited ? because as per my above mentioned example new laptop value is 35K whereas we paid cash 20K so in which account difference amount 15 will be recorded ?Further, I really appreciate if you help me to inform the procedure of recording old laptop as per my above mentioned example. Dear Rajat Gupta Sir, Your kind response awaited.

Dear Rajat Gupta Sir,

Please reply on above.

Originally posted by : My Videos
	Originally posted by : My Videos Originally posted by : My VideosOriginally posted by : CA Rajat GuptaMy opinion is that you should record the new laptop at its fair value irrespective of the selling price and cash paid on the older one. The net value in the transaction can be recorded as profit/loss. Hope this works! Dear Rajat Gupta Sir,Thanks for your valuable reply. Please let me know if I booked fair value of laptop (as per my example mentioned above mentioned) which account should be credited ? because as per my above mentioned example new laptop value is 35K whereas we paid cash 20K so in which account difference amount 15 will be recorded ?Further, I really appreciate if you help me to inform the procedure of recording old laptop as per my above mentioned example.Dear Rajat Gupta Sir,Your kind response awaited. Dear Rajat Gupta Sir, Please reply on above.

3rd Reminder

Dear Rajat Gupta Sir,

Your kind response awaited on above. 

Originally posted by : My Videos
	Originally posted by : My Videos Originally posted by : My VideosOriginally posted by : My VideosOriginally posted by : CA Rajat GuptaMy opinion is that you should record the new laptop at its fair value irrespective of the selling price and cash paid on the older one. The net value in the transaction can be recorded as profit/loss. Hope this works! Dear Rajat Gupta Sir,Thanks for your valuable reply. Please let me know if I booked fair value of laptop (as per my example mentioned above mentioned) which account should be credited ? because as per my above mentioned example new laptop value is 35K whereas we paid cash 20K so in which account difference amount 15 will be recorded ?Further, I really appreciate if you help me to inform the procedure of recording old laptop as per my above mentioned example.Dear Rajat Gupta Sir,Your kind response awaited.Dear Rajat Gupta Sir,Please reply on above. 3rd Reminder Dear Rajat Gupta Sir, Your kind response awaited on above.

4th Reminder 

Dear Rajat Gupta Sir,

Your kind response awaited on above.