Bhavesh (Accounts) (899 Points)
14 July 2013A Firm has Sale a Car for Rs. 285000/- on 06th July 2013. The Car Was Purchased in the Year 2009-10 for rs. 5,50,000/-. The WDV is 262896/-. The Cost as on 31-03-2013 comes to 2,87,104/-. What Entry has to be passed for the sale of Car. Whether depreciation has to be claimed for 3 Months. Can anybody explain me in details. The Flat Rate of 15% depreciation has been taken. Thanks in advance
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 14 July 2013
In your books
Bank Dr 285000
To Motor Car 262896
To profit on sale of car 22104
It is assumed that you dont have any other car in firm.
since you dont have any other car in firm.
Hence the IT dep works out as under:
WDV 287104
Sale 285000
Bal 2104
Therefore Rs. 2104 is deemed short term capital loss u/s 50.
Hope the above answers your queries.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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