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Expenses incurred to sale PPE
Accountancy
Expenses incurred to sale PPE is recorded in p&l account or adjusted from asset account by crediting assets account?
Answers (5)
sushma verma
Will be credited to asset.... To calculate the net gain or loss on sale. As we also do this in capital gain
If you credit asset, will you debit bank?
CA Suraj Lakhotia Admin
You would transfer the PPE to PPE held for disposal account. Post which you will debit the PPE held for disposal account with all expenses. You will credit the amount received in the same account. The balancing figure would be profit or loss.
Sir expenses incurred to sale PPE is recorded in asset disposal account or in profit and loss account??
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