Dispose of assets and Write off asset
Wednesday, April 8, 2009
Dispose of assets means sale of assets against some considerations in cash or in kind, whereasWrite off Assets means charge the asset to the Profit and Loss account without any consideration. It normally happens due to no value of asset avaialable whereas some book value is there appearing in balance sheet.
Accounting Treatment
of Dispose of assets:Dr. - Cash / Bank Account
Dr. - Accumulated Depreciation
Dr. - loss on sale of assetCr. - Cost of asset
Cr. - Gain on sale of asset
Examples are sale of vehicle, office equipment, machinery, etc . . . .
Accounting Treatment of Write off of assets:
Dr. - Accumulated Depreciation
Dr. - Miscellaneous charges - Profit and loss account
Cr. - Cost of asset
Examples are obsolete items of plant and machinery/store and spare, receivables, etc . . .
Labels: accounting
posted @ 1:45 AM,
0 Comments:
Post a Comment