I.t.assess sales of machinery value rs:4 lacs amount credited capital account.if Assess purchases of machinery value not debited to capital account
question:
Assess how to passed accounting entries in books
This is either at the lower of carrying amount or fvlcd and fvlcd only in the case of acquired asset in business combinations IndAS 105. Now that you know how much it is worth ie., 4 lacs,
the presentation for held to sell assets are initially presented in the balance sheet eg.,
Held for sale asset a/c
To Fixed assets a/c
then make necessary disclosures as per the standard. Then expense costs related to sales
Finance costs a/c
To Bank a/c
after the sale is over,
Bank a/c
Loss from disposal a/c
To held for sale asset a/c
To Gain from disposal a/c
tax liabilities could be involved and usually I am currently not working on the tax issues. Depreciation is done till the date of held for sale only and not during the period classified as held for sale.
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