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Query relating to accumulated deprecation

sumit (CA student) (203 Points)

24 September 2008

Hi.....pls help me with this query.

Gross Block of car as on 1.4.2007 - Rs.3690704.55

Accumulated Depreciation till 31.3.2007 - 2530035.35

New Car purchased on 11.3.2008 for Rs.7724876

Car sold on 14.3.2008 ( which has the gross block and accumulated depreciation as mentioned above) for Rs. 1450000

Deprecation Rate - 25.89%

Please tell me what journal entries need to be passed regarding accumulated deprecation and depreciation for current year for both the cars and for what amount??

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5 Replies

Shubhankar Limaye (B.Com.) (174 Points)
Replied 25 September 2008

For NEW car :

Car A/c Dr. at Gross Value i.e. 7724876

To Creditor

For Sale of Car:

Depreciation A/c Dr. Depreciation from 1.4.07 to 14.03.08

To Accumulated Depreciation on Car (If such account exists, otherwise the same may be credited to Car A/c)

If Sold at Profit :

Debtor A/c Dr. 1450000

Accumulated Depreciation A/c Dr. Total Depreciation charged till now

To Car A/c (Gross Cost of Car)

To Profit on Sale of Car (Profit)

If Sold at Loss :

Debtor A/c Dr. 1450000

Accumulated Depreciation A/c Dr. Total Depreciation charged till now

Loss on sale of Car A/C Dr. (Loss)

To Car A/c (Gross Cost of Car)

Presentation

Opening Gross Block + New Car's Gross Cost - Gross Cost of Car Sold

Opening Depreciation Block + Current Year's Depreciation (Inclusing Depreciation on Car Sold) - Total Depreciation Charged on Car sold (Including current year's Depreciation on that Car)

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sumit (CA student) (203 Points)
Replied 25 September 2008

thnks for dis info

(Guest)

Hi.....pls help me in following question

1 income tax list of all asset depreciation of2008-2009

2. income tax return filling show net salary, Gross salary !

3 short term long term capital gain on stock trading how to calculate please example & formula

4 pleas locking period of (KVP , NSC, PPF , MUTUAL FUND ) investment.

5. i am investment 100,000 Rs under 80c only for this year but i am confused this slab only for 100,000 limit one year or every year 100,000slab limit in investment.

please answer also in my mail id :- dalwadi.ritesh @ yahoo.com

Thank you,

ritesh dalwadi