entry for depericiation

(Guest)

if a person purchase a asset for 5000/- in the financial year 2009-10 in the month april 1

and sell it in the month 31 january 2010 for 4500/-

what will be entry pass for sell of machenary +depericiation and loss incured for selling of asset

Reply
Follow
Share

4 Replies

Deepesh Khatri (CA) (167 Points)
Replied 28 September 2010

Since the purchase price of the machinery is just Rs. 5000, i would ask you to consider it as a consumable in the books of accounts.

Saurabh Toshniwal (ca final) (2363 Points)
Replied 29 September 2010

Originally posted by : Deepesh
	Since the purchase price of the machinery is just Rs. 5000, i would ask you to consider it as a consumable in the books of accounts.

(Guest)

Dear Sumit

I agree with Mr.Deepesh

For your information You are passed two entry

1) Bank Account Dr.

To Fixed Assets A/c

because you have profit

2) Depriciation A/c Dr.

To Fixed Assets

To Profit & Loss of Sale of Fixed Assets

Note:- Amount of Rs.5,000 not consider in FA accounts.

Santosh (Student ( Final Year - New )) (348 Points)
Replied 29 September 2010

Originally posted by : saurabh toshniwal
	Originally posted by : Deepesh Since the purchase price of the machinery is just Rs. 5000, i would ask you to consider it as a consumable in the books of accounts. OR 1 Fixed Asset A/c Dr. purchase price To Bank A/c 2 Depriciation A/c Dr. Dep. Amt. To Fixed Asset A/c 3 Bank A/c Dr. Sale Amt. To Fixed Asset A/c In case of Loss on Sale 4 Profit & Loss A/c Dr. Amt. of Loss To Fixed Asset A/c In case of Profit on Sale 5 Fixed Asset A/c Dr. Amt. of Profit To Profit & Loss A/c