Dear members
10 years ago 5 separate machineries were purchased through a single invoice and capitalised in the books. The cost of individual machineries and Depreciation reserve are not known today. The company is charging depreciation regularly on wdv.
Now the company is going to replace one of the above machinery and it will be a capital nature. My query is
1. How to arrive at the WDV for the old machine which is going to be replaced by new one.
2. Method of accouing profit / loss in the books.
CAclubindia
