ASHUTOSH PANDEY (Asst.Manager Accounts) (63 Points)
30 December 2013Dear All,
I need your help to pass an entry of Fixed assets sale.
If we purchase a fixed assets on 1.12.2011 At Rs.1,00,000/-(One lakh ) . After 2 yrs depreciation of Rs.40000/- as on 31.12.2013.It is sold at the price of Rs.65000/-.
Please suggest me entry for this Sale.
Regards
Ashutosh.
CA Ketan Kothari
(Associate Consultant)
(86 Points)
Replied 30 December 2013
| Originally posted by : ASHUTOSH PANDEY | ||
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Dear All, I need your help to pass an entry of Fixed assets sale. If we purchase a fixed assets on 1.12.2011 At Rs.1,00,000/-(One lakh ) . After 2 yrs depreciation of Rs.40000/- as on 31.12.2013.It is sold at the price of Rs.65000/-. Please suggest me entry for this Sale. Regards Ashutosh. |
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Hi Ashutosh,
Assuming that depreciation have been booked as expenses and not transferred as provision. The value of Asset on the day of sale is Rs. 60,000.00 and the sale proceeds is Rs. 65,000.00 so the entity have made a profit of Rs,. 5000.
The Entry would be
Bank A/c dr. 65000
To Asset A/c 60000
To Profit on Sale of Asset 5000
Thanks
NOUFAL
(ACCOUNTANT)
(762 Points)
Replied 30 December 2013
Bank A/c Dr 65,000
Depreciation Dr 40,000
To Assets 100,000
To Profit on sale of Assets 5,000
sunilkumar
(article)
(36 Points)
Replied 03 January 2014
hi
it depends on the situation , whether the asset sold belongs to the block of assets or individual asset, if asset is sold sold from block of assets, then dont book profit upto the WDV of the block of assets.
but in case of individual asset you can book profit, and the entry will be
Bank -Dr 65k
to asset 60k
to profit 05k
Ayush Lakhotia
(43 Points)
Replied 04 July 2021
Sale of fixed assets on credit not recived money at that time receving money at every month sold the vehicle of 500000 and recived money per month 50000 so what will be group and entry
CAclubindia
