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-   -   Impact of Fixed Assets Sale entry on Compay Act & As per Income Tax (https://www.askmehelpdesk.com/showthread.php?t=412879)

  • Nov 4, 2009, 10:36 PM
    rishipurohit
    Impact of Fixed Assets Sale entry on Compay Act & As per Income Tax
    How we can do the journal entries of fissed assets sale for a company?
    What will be the impact of Accounting in the Campanies ledger & and as per incom tax rule.
  • Nov 5, 2009, 05:16 AM
    dileepasampath

    The way you do the journal entries for a sale transaction of Fixed Assets depends on the way you depriciate them. Let us assume you keep a "provision for depriciation" account for this purpose. Then follow the following guidelines.

    1) Removing the cost of the assets sold from asset account

    Sales of fixed assets account Dr xxx
    Fixed Asset account Cr xxx

    2) Removing the relevent depriciation amount (up to the date of selling - based on the accounting policy of the company) from "Provision for depriciation" account

    Provision for depriciation account Dr xxx
    Sale of Fixed assets account Cr xxx

    Then balance the "Sale of Fixed assets" account and you will get the profit or loss of the transaction.

    Tax implication of the transaction would certainly depend on the relevant tax jurisdiction of your country. Thus I can not answer with sure.

    [email protected] - contact me for further information in needed..

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