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accounting entry for sale of fixed asset

sanjaya (Accountant) (85 Points)

08 September 2010

My query is : If a fixed asset which is a scorpio Car purchased with a loan from a Bank sold then what will be the accouting entry for the given details.

WDV of the Car on 31/3/09 is 564427.94.

Sale value of the car is 460000.00.

Amount paid by the party 261557/- and for closure of Loan account 198303/-

Vehicle sold in the month of June 09.

I want to know the entry for closure of loan account and sale of the fixed asset.

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13 Replies

Rahul Agarwal (Future CA) (217 Points)
Replied 08 September 2010

Bank A/c Dr 460000

To FA A/c 460000

Loss on sale A/c Dr. 104427.94

To FA a/c 104427.94

Loan A/c Dr. 198303

To bank a/c 198303

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Sheetal Metha (Article Assistant) (208 Points)
Replied 08 September 2010

Detail Entry for sale of Fixed Asset - Scorpio

Attached File : 43 sale fixed asset scorpio.txt downloaded: 2310 times

4 Like

Pkala (CA Final (New Course)) (211 Points)
Replied 08 September 2010

I agree with Sheetal Metha

Prateek (B.Com(H) PGDBA CA Final) (436 Points)
Replied 08 September 2010

Dep Dr 21166

To Car 21166 3 mnths Depreciation

BANK Dr 261557

Loss on sale Dr 83261.94

Loan A/c Dr 198303

Round Off Dr 140

Car Cr 543261.94

Faiz Ahmed ( Article Trainee) (1731 Points)
Replied 08 September 2010

Absolutely right Sheetal Mehta. Good work ...

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Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 08 September 2010

I have just modified the answer.

Attached File : 22 answer.txt downloaded: 961 times

ravi tej (ca final) (392 Points)
Replied 09 September 2010

It is recommended to assume that the scorpio sold at 1st june2009. 1. W.D.V=564427.94 2. W.D.V as on 1stjune=564427.94-564427.9415%2/12=550316.94 Less sale proceeds =460000 Loss on sale =90316.94 3. bank a/c Dr.261557 party a/c Dr.198443 p&la/c Dr.90316.94 To scorpio a/c550316.94 4. bank loan a/c Dr198303 to bank a/c198303

Rahul Agarwal (Future CA) (217 Points)
Replied 09 September 2010

Sorry!!!!

Mah fault

totally ignored the date part, I overlooked it.

But anyways I too agree with Sheetal

Hemu Kapoor (CA - Final Student) (158 Points)
Replied 09 September 2010

I AGREE WITH SHEETAL

Divya Karthik (S) (459 Points)
Replied 10 September 2010

If its profit on sale of the fixed asset, we have to disregard it fron the computation right?

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Mamata Chavan (ca final ) (34 Points)
Replied 12 September 2010

In above Case can we claim depreciation (Rs.21166/-) against our business income or claim short term capital loss as block of assets get zaro, and if block of assets not zero then what would be the treatment !!!