Loss on Sale of Car

Discussion in 'A/c entries' started by Madhu, Mar 18, 2014.

  1. Madhu

    Madhu Member

    HI the Company where I am working owns a lot of vehicles. We have shown everything under Vehicles under Fixed Assets. Last year the company had sold a banz car with a very less price than the depreciated price. The balance amount still comes under the head vehicles with the name benz. I told the chief accountant to transfer the amount to loss on sale of vehicle and transfer the amount to P&L. But he argues that as there are lot of Vehicles under the head vehicles it doesnt matter even if it is sold on loss and let it be there. Dear friends kindly let me know the correct treatment.

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