Machinery purchased on 1/04/2014 for Rs.200000 .Depriciation@10% (SLM)
Machinery sold for Rs. 180000 on 30.04.16
What is Profit or loss on Sale of Asset?
View AnswerSTEP 1
Calculate Dep and Closing Value for Different years
| Particulars |
2014 - 15 SLM Basis |
2015-16 | 2016-17 |
| Opening value | 200000 | 180000 |
160000 |
|
less Dep 10% |
20000 |
20000 |
1667 200000*10/100*1/12 |
| Closing Value | 180000 | 160000 | 158333 |
Cost Price - Depreciation = 158333
Sales Price = 180000
Profit on Sale of Asset = 180000-158333 = 21667
Pass Entries For Depreciation
Entry for depreciation 1st year (1/04/2014 to 31/3/2015)
View Answer3/31/2015
Depriciation A/c Dr 20000
To Machinery 20000
Entries For Depriciation for 2nd year (1/04/2015 to 31/03/2016)
View Answer3/31/2016
Depriciation A/c Dr 20000
To Machinery 20000
Entries For Sale of Fixed assets
View Answer3/31/2016
Bank a/c / Party a/c Dr 180000
To Machinery (200000-10000-10000) 158333
To Profit on sale of fixed assets 21667
