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Purchase Machinery on 10000 USD Depreciation on machinery is 20% After 3 years sold the Machinery on 2000 please pass the journal entry ?

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Question added by kamran khan , Accountant , MRH Hotels Group
Date Posted: 2017/07/18
Sandeep Panchal
by Sandeep Panchal , accountant general , Future Services general trading and contracting co

first of all

MACHINERY A/C -DR     10,000

 CASH /BANK     -CR              10,000

 

DEP A/C       -DR                 6000

ACCUMULATED DEP ON MACHINERY     6000

SO HERE BOOK VALUE IS USD 4,000/-

 

CASH ON SALE OF MACHINERY    -DR   2000

PROFIT OR LOSS ON SALE OF MACHINERY  -DR  2000

ACCUMULATED DEP.ON MACHINERY -DR  6000

MACHINERY A/C -CR                                                 10,000

 

 

 

 

Khaliq Raza MBA   MS   CFE  AFA
by Khaliq Raza MBA MS CFE AFA , Finance Manager , Vertex Trading

1.

Mchinery A/C  10000

        Bank/Cash A/C   10000

 

2.

Acc Depreciation 6000

Cash Received     2000

Loss on Sale        2000

           Cost                            10000

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