Selling a device, Accounting Basics

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Assume we are selling a device for 6000 and the company need to replace that device with a new device which is a bit more than the prior price say 7000.Then,how we can account this?

Ans) First we require to write-off the old asset ( by reversing the asset, accumulated depreciation and depreciation for the present  FY by Cr the Fixed asset Write-off and Dr Proft/Loss on sale of asset under P&L account )

 


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