XXX Ltd. Bought asset for Rs. 1,00,000 on 01st January 2001. It incurred installation charges of Rs. 10,000 on the asset and commissioned the asset on 1st April 2001. The Co. follows straight line depreciation at 10% p.a. Company follows a January - December financial year for book closure.

On 01st January 2003 the asset was sold for Rs. 50,000
Please pass necessary journal entries for all the years in the books of XXX Ltd.

For Jan 1, 2001 you need to record the asset at cost plus installation charges.

Dec 31, 2001 you need to record the depreciation.

Dec 31, 2002 you need to record the depreciation.

Jan 1, 2003 you need to record the sale of the asset.