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Asset book value of dhs.150 transferred to sister company on31.08.2011.Asset purchased on01.10.2010.Decided charge20%Depreciation on this asset under straight line method?What should be the JV when it transfer to Sister company?
Entries:-
1. Sister Concern Co. (XYZ) debited and Asset Credited.
2. Accumulated Depreciation debited and Other Income / Loss on FA Credited.
For Example:
If Asset value is
Accumulated is
Net book value is
JV will be
Sister Concern's Current A/c Dr.
Accumulated A/c Dr.
To
Asset A/c
In this scenario we simply closed the asset account and the accumulated deprecation related to that asset dr : sister company by the net value after depreciation 122.5
dr : accumulated depreciation 27.5
cr : assets by the historical value 150
