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Hire purchase and installment sale

Illustration 9 = sir I have doubt in the table of provision for depreciation of tractor account, sir they transfer immediate preceding year and current year depreciation amount is transferred in disposal of tractor account ,why sir ? ,tell me the reason for the transfer to disposal of tractor account

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Subash Chandrabose

Subash Chandrabose

CA Inter

31K+

07-Mar-21 07:39

24

Answers (1)

So that book value of tractor is arrived at ( Acq cost - depreciation is book value right) and profit/loss can be computed after subtracting book value from the amount realized


Sriram Somayajula

Sriram Somayajula

Admin

07-Mar-21 07:52