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Machinery purchased on 1/04/2014 for Rs.200000 depreciation@10% (SLM)

Machinery sold for Rs. 130000 on 30/04/16

What is Loss on sale of Fixed Assets?

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Step 1

Particular

2014 - 15

SLM Basis

2015 - 16 2016 - 17
 Opening value
 200000
 180000
 110000
 

less Dep 10%

 

20000

 

20000

 

1667

(200000*10/100*1/12)

 Closing Value
 180000
 160000
 158333

Cost Price = 158333

Sales Price = 130000

Loss on Sale of Asset = 130000 - 158333 = 28333

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Pass Entries for Depreciation

Entry for depreciation 1st year(1/04/2014 to 31/3/2015)

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3/31/2015

Depreciation A/c Dr  20000

To Machinery              20000

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Entries For Depreciation for 2nd year (1/04/2015 to 31/03/2016)

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3/31/2016

Depreciation A/c Dr 20000

To Machinery           20000

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Entries For Depreciation for one month (1/4/2016 to 30/04/2016)

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3/31/2016

Depreciation A/c Dr 1667

To Machinery        1667

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Entries For Sale of Fixed assets

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3/31/2016

Bank a/c / Party a/c  Dr             130000

Loss on sale of fixed Assets         28333

      To Machinery B.V                         158333

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  1. Accounts and Finance
  2. Step 3 Passing Book Closure Entries
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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