What are the things to be taken care in the books of accounts while doing a 'Sale of Fixed Assets'? JVs needed in the books?

Jv's needed on sale of fixed assets are

Dr. Cash / bank

Dr. Accumulated depreciaton                 ( full amount in the books, assuming that company provided depreciaton till the date of sale or as per depreciation policy)

Cr.  Fixed Assests

Cr Profit on sale of assets ( Dr. loss on sale of asset)

To check Whether the Depreciation has been provided till date of Sale.

During the Sale of Fixed Assets, both the asset value and accumulated depreciation must be brought to " Disposal A/c". The payment recieved on sale should be brought to the credit of Disposal a/c. the balance in this Disposal A/c will be the "Profit/Loss" on sale of fixed asstes.

The JV's will be:

. Disposal A/c...Dr

      To Fixed Asset a/c

. Accumulated Depreciation a/c..... Dr.

       To Disposal A/c......

. Cash/ Bank A/c.....Dr.

        To Disposal A/c......

The Balance Profit/ Loss in Disposal Ac/c is transferred to P&L A/c

Beside above recommended JV by Ms. SREEDEVI SUNILKUMAR. We also need to ensure Fixed disposal approval, details of Buyers which may be requried to file with Tax Authorities and Tax on gain or Loss (if applicable)

Ensure that the depreciation till date is passed in the books.

Then the following entries to be passed

Dr. Cash / Bank

Dr. Accumulated depreciation

Cr. Fixed asset

Cr. / Dr. Profit / Loss on sale of fixed asset