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Preparation of fs

Accountancy

If an asset like furniture is in trail balance and there is an adjustment that particular asset is sold during that year and a new asset is exchanged during the same year... Do we need to deduct +add those assets to determine the balance of furniture

vamsi krishna

CA Inter

★ 43K+

09-Nov-24 11:44

118

Answers (1)

Best Answer

It is best to create a ledger account for furniture. If it is sold and there will be a depreciation for that and after reducing the depreciation the furniture will be sold. If the furniture is sold for higher/lower than the carrying value then the profit/loss will be shown in P& L a/c. If the new asset is exchanged we will show the value of the new asset exchanged in the furniture account after reducing the old asset value after depreciation.

Likith D

Moderator

11-Nov-24 08:33

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