Whether depreciable fixed asset, or non depreciable
what is the constitution of Assessee
Deduct sale amount from block of asset
If loss after sale of asset
Bank A/c Dr
Depreciation A/c Dr
Profit & loss A/c Dr
To Fixed Asset A/c Cr
(Being asset sold loss transfred to profit & loss after depreciation )
If Profit after sale of asset
Bank A/c Dr
Depreciation A/c Dr
To Asset A/c Cr
To profit & loss A/c Cr
( Being profit transfer to P&L afte depreciation )
CAclubindia
