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schedule for fixed assets

bhavna (ca-final student) (120 Points)

02 August 2010

while preparing schedule for fixed assets, how do we treat sale of any asset (according to Co's Act)?

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CA. Nishant Jain (Audit Executive) (411 Points)
Replied 02 August 2010

Dear Bhavna,

While preparing Schedule of Fixed asset as per Companies Act, sale of asset is shown as follows:

For simple understanding, lets take an example

Suppose a company is having only a single asset (Furniture), the gross value of which as on 31.03.2009 is Rs. 50000, Accumulated depriciation as on 31.03.2009 is Rs. 40000. The asset was sold during the year on 28.05.2010 for Rs. 5000, the depriciation on asset till 28.05.2010 Rs. 600(assumed, in real situation depriciation is calculated on no. of days basis).

Before Schedule Lets See the entry of sale of fixed asset in books of account

Bank A/c .............................................Dr. Rs. 5000

Accumulated Depriciation A/c ........Dr. Rs. 40600

Loss on sale of Asset A/c................Dr. Rs. 4400

To Furniture A/c Rs. 50000

Now,

Schedule of Fixed Asset:


As Per Companies Act
Name of Assets	Cost as on 01.04.09	Addition during the year	Sale during the year	Total	Dep. as on 01.04.09	Dep. during the year	Dep. Adjustment	Total	WDV as on 31.03.10

Funiture	50,000.00	-	50,000.00	0.00	40,000.00	600.00	40,600.00	-	0.00

TOTAL	50,000.00	-	50,000.00	0.00	40,000.00	600.00	40,600.00	-	0.00