Mady bros. who is into the business of Manucturing electrical goods, sold Machine for Rs. 1,50,000.00 which was bought 3 months ago for Rs. 1,80,000.00 .
Now the entry can be made as under :
- Cash Rs. 1,50,000 Dr
Machinery Rs. 1,50,000 Cr
- Accu. depreciation account Rs. 4,500 Dr
(Being 10% dep. for 3 months )
- loss on sale of assets Rs. 25,500 Dr
(Under indirect expenses)
Machinry A/c Rs. 25,500 Cr
(Being loss suffered on sale of fixed assets)
Now final entry will be the:-
Cash A/c - 1,50,000 Dr
Acc. Depreciation A/c- 4,500 Dr
Loss on sale of Fixed Asset - 25,500 Dr
Machinery A/c 1,80,000 Cr
(Being loss on sale of fixed asset ) ;)
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