yogen (Accountant) (105 Points)
19 February 2018Dear Sir/madam,
What are the journal entries in following cases.
1. Value of Assets is zero due to depreciation but now we are selling the same Assets (scrap) in some value.
Note: We have made the following entires during Procurement and Depreciation booking.
During Procurement : Dr. Assets (equipment)
Cr. Bank a/c
During Depreciation: Dr. Depreciation (equipment)
Cr.Provision for Depreciation (equipment)
Thankyou in advance
Yogendra Chettri
CA Urvi Gandhi
(.)
(347 Points)
Replied 19 February 2018
satish
(teaching)
(2046 Points)
Replied 19 February 2018
1. adj entry ( provision for depreciation to be transferred to fixed asset a/c
Provision for depreciation a/c Dr.
To fixed asset A/c
2. on sale of fixed asset
Bank A/c Dr.
To Fixed asset
3. Profit on sale of fixed asset. (balancing figure of fixed asset is to be transferred to profit and loss A/c)
Fixed Asset A/c Dr.
To Profit and loss a/c
Sanjay Vyas
(Co-founder)
(92 Points)
Replied 22 May 2018
Fixed Assets are those assets which have useful life of more than 1 year and these assets are used in business and substaintial cost is incurred in purchasing these assets. Fixed assets can be divided on the basis of two things.
https://www.tendersontime.com/publish-tender/fixed-assets.H T M L
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
