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Suppose One asset purchased in 2006year and calculated SLN
method depreciation @10%pa for value 100000. Now middle of
the present year the assets was transfered to B company.
How can we take the accounting for previous depreciation,
asset value (transfer value) to debit B company. What is
the asset status in BS.
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Answer / parixit namdhar
B Company A/c Dr. <Transfr Value>
Provision for Dep. A/c Dr. 25,000
Loss(If Any) A/c Dr. <Diffrence Amount if '-'>
To Asset A/c <By Asset Purchase Price>
To Profit (If Any) <Diffrence Amount if '+'>
Asset will be squred of in BS
*Dep. calculated for 2 1/2 year.
| Is This Answer Correct ? | 10 Yes | 5 No |
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