INTERVIEW QUESTIONS ACCOUNTS FIXED ASSETS DETAILS

Question: When an asset completed its life period in the books of account, and we sale that asset then what is the entry in the books of account?

Answer: An org should have 2 a/c codes , 1 for fixed asset and the other for depreciation for the same asset.When the asset is purchased ,pass Asset A/c --Dr.
To Supplier A/c
For depreciation, Depreciation A/c --Dr., To Asset /c., in this way after total depreciation entries,the asset balance gets turned to ZERO. Then if the asset is sold,
Bank a/c --- Dr.
To Income A/c

An org should have 2 a/c codes , 1 for fixed asset and the other for depreciation for the same asset.When the asset is purchased ,pass Asset A/c --Dr.
To Supplier A/c
For depreciation, Depreciation A/c --Dr., To Asset /c., in this way after total depreciation entries,the asset balance gets turned to ZERO. Then if the asset is sold,
Bank a/c --- Dr.
To Income A/c
Source: CoolInterview.com

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