Hi All,
Can any one let me know, what is the accounting treatment for the below?
1. Proceeds on sale of Old newspaper?
2. Proceeds on Sale of 16 UPS batteries (old)?
3. Purchase of new UPS batteries on a buy back method. (i.e., 16 new UPS batteries purchased worth Rs.1600/-each, while the old batteries were taken by the supplier @ Rs.150/- each)
Best Regards
Narasimha Rao
As far as accounting is concerned , proceeds of newspaper sale will be just another revenue reciept and credited to P/L a/c.
As regards the sale proceeds of the capital asset is concerned , it will be as per AS 10 and compared with WDV and diff will be Dr/Cr to P/L.
Sale and purchase will be treated as separate transactions.
If capital asset is of WDV = 0 ,then all proceeds - Cr to P/L a/c
CAclubindia
