Accumulated Depreciation Question-I have a asset?

Question

i have asset value 10 lakhs, i deducted depreciaton rs.10000 per year,but after end of 6 months i sold my asset with profit of Rs.12lakhs. Give me the accounting entries of the same wiht accumulated depreciation calculation. kindly advise me.

vijay 9866977361

Answer 1

As per your question

Depreciation for 6 Months is 10000/12 * 6 = 5000

WDV of Asset = 995000/-

Sale Value = WDV + Profit

i.e ... 995000+1200000 = 2195000/-

Note: You told that you sold with a profit of 12Lakhs So I am Considering 12Lakhs Fully As Profit. ( If you say the Words " I Sold My Asset for Rs. 12Lakhs  the Answer will be different )

So The Entry Will Be--

Cash/Bank/Party A/c          Dr.           2195000

Acc. Dep A/c                       Dr.                  5000

        To Asset A/c                                                      10,00,000

        To Profit On Sale Of Asset A/ c                      12,00,000

If You Sold For Rs. 12 Lakhs

Entry Will Be...

Cash/Bank/Party A/c          Dr.           12,00,000

Acc. Dep A/c                       Dr.                  5000

        To Asset A/c                                                     10,00,000

        To Profit On Sale Of Asset A/ c                        2,05,000