Fixed Assets Question: Download Fixed Assets PDF
Tell me what are the journal entries which get passed from asset purchasing to asset retirement?
Answer:
At the time of addition
Assets NA account -------dr
To asset clearing account ----CR
At the time of retirement
the nbv amount has been moved to the gain & loss account.
In sale case
we need to pass a journal entry to transfer the amount from gain & loss account cr and asset sale clearing account cr.
Assets NA account -------dr
To asset clearing account ----CR
At the time of retirement
the nbv amount has been moved to the gain & loss account.
In sale case
we need to pass a journal entry to transfer the amount from gain & loss account cr and asset sale clearing account cr.
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