Dear All!
Kindly clarify as to how accounting needs to be done in the following scenario in line with AS-10
The company has acquired a mobile phone costing Rs.22,000 by exchanging an old mobile which is taken for Rs.2,000 and paid the balance by cheque. The value of the old mobile in books is Re.0.
Is the Following accounting treatment correct?
Fixed Asset Dr 22000
To Bank 20,000
To Profit on sale of Fixed Asset 2,000