Ram (Accountant Trainee) (30 Points)
27 October 2010Please Help !!!
As on 31.03.2009 In our company we have 8 computers.
On 25.10.2010 we bought 5 computer from a dealer. He had taken 3 old computer from the company and supplied 5 new computers. How to enter this in tally.
How to enter the 3 old computer deletion in tallly that reflects in fixed assets.
Am i clearly express my question?
Sorry for my poor english.
Thanks in advance.
Ramu.
Edwin
(Article)
(41 Points)
Replied 28 October 2010
Show the entry for sale in tally as
Cash/Bank A/c Dr (Agreed Value)
loss on sale A/c Dr
To Fixed Asset A/c
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 28 October 2010
Hi Ram,
In your case your company has not sold the old comps, hence in my opinion, cash / bank account will not come into the picture. Your company has just replaced the old comps for new ones.
I would suggest following accounting entry (along with one example) :-
Suppose, WDV of old 3 comps is Rs. 7,000/- ; purchase price (gross) of 8 new comps is Rs. 40,000/- ; seller agreed to deduct Rs. 6,000/- from selling price on exchange ; hence, company has paid only Rs. 34,000/- (after deducting Rs. 6,000/-)
Now, the entry would be :-
Computer A/c. ........................ Debit 40,000/-
To Computer A/c. (old) 6,000/-
To Bank Account 34,000/-
Now the balance in Old Comp account will be Rs. 1,000/-. Just write off that amount to P&L A/c.
Entry would be :-
P & L A/c. .............................. Debit 1,000/-
To Computer (old) A/c. 1,000/-
ALL THIS IS WHAT I THINK, OTHER VIEWS ARE WELCOME.
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 28 October 2010
| Originally posted by : Yogesh Shah | ||
 |
Hi Ram, In your case your company has not sold the old comps, hence in my opinion, cash / bank account will not come into the picture. Your company has just replaced the old comps for new ones. I would suggest following accounting entry (along with one example) :- Suppose, WDV of old 3 comps is Rs. 7,000/- ; purchase price (gross) of 8 new comps is Rs. 40,000/- ; seller agreed to deduct Rs. 6,000/- from selling price on exchange ; hence, company has paid only Rs. 34,000/- (after deducting Rs. 6,000/-) Now, the entry would be :- Computer A/c. ........................ Debit 40,000/- To Computer A/c. (old) 6,000/- To Bank Account 34,000/- Now the balance in Old Comp account will be Rs. 1,000/-. Just write off that amount to P&L A/c. Entry would be :- P & L A/c. .............................. Debit 1,000/- To Computer (old) A/c. 1,000/- ALL THIS IS WHAT I THINK, OTHER VIEWS ARE WELCOME. |
 |
Agree!!
shailendra
(Accounts Executive )
(128 Points)
Replied 03 November 2010
I agree with Yogesh Shah but there is minor mistake " purchase price (gross) of 8 new comps is Rs. 40,000/- . There should be 5 new comps in place of 8 new comps mentioned.
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 04 November 2010
HI Shailendra,
In my example, what I have said is - suppose Company has purchased 8 new comps but price of them is proportionately reduced by value of old 3 comps.
Now if you account for only 5 comps then Fixed Asset A/c. will not look proper and true. I have debited Fixed Asset by GROSS value of all new 8 comps. Value of 3 old comps is credited in my example. Ultimate effect is same but IT REFLECTS MORE PROPER & TRUE PICTURE.
CAclubindia
