Depreciation - Part 4 - Sale of Assets | Class 11th Accounts | CA Pradeep Assiwal

Sale of Asset & Calculation of Profit or Loss 🎯 | Class 11 Accountancy (Depreciation Ledgers & Working Notes) Master how to account for the Sale of an Asset (Machinery) in Class 11 Accountancy! Learn the exact chronological journal entries on the date of sale, pro-rata depreciation calculations up to the sale date, determining book value, computing Profit or Loss on sale, and presenting clean multi-machine ledgers under both SLM and WDV methods to score full marks in your school exams! Hey Class 11 Commerce Champions! 👋 Welcome back to our dedicated masterclass series on Chapter: Depreciation, Provisions, and Reserves. In our previous sessions, we mastered how to calculate depreciation and prepare basic Asset and Depreciation Accounts. Now, we tackle the single most important and heavily tested sub-topic of this chapter: The Sale of an Asset (Full and Partial Sale of Machinery)! In Class 11 annual exams, every comprehensive 6 to 8-mark numerical includes at least one asset being sold mid-year, followed by the purchase of a replacement machine. Students frequently lose marks due to date confusions, forgetting pro-rata depreciation for the fractional year of sale, or misidentifying profit versus loss in ledger posting. In this practical, step-by-step masterclass, we break down the Chronological 3-Step Rule on Date of Sale, build bulletproof Working Notes to track multiple machines contrast the calculations under both Straight Line Method (SLM) and Written Down Value (WDV) Method, and solve live board-standard problems without errors! If this masterclass made calculating profit or loss and drafting the sale entries in the Machinery Account clear and straightforward, hit the 👍 Like button, Share this class with your commerce classmates, and click Subscribe so you don't miss our upcoming session on Preparation of Provision for Depreciation Account! 💬 Class Challenge: On 1st April 2023, a firm purchased a machine for ₹1,00,000. Depreciation is charged @ 10% p.a. on the Written Down Value (WDV) Method, with accounts closing on 31st March. On 1st October 2025, the machine is sold for ₹72,000. Calculate: Depreciation on the machine for the year 2025–26 (up to 1st October 2025). The Written Down Value (Book Value) of the machine on the date of sale. The Profit or Loss on the sale of the machine. Drop your step-by-step answers in the comments below! 👇 #DepreciationAccounting #Class11Accounts #SaleOfAsset #SaleOfMachinery #MachineryAccount #ProfitOrLossOnSale #SLMMethod #WDVMethod #Class11Accountancy #AccountingLedgers #CommerceClass11 #CBSECommerce #TSGrewalSolutions #DKGoelAccounts #NCERTAccounts #DoubleEntryBookkeeping #CommerceStudents #Class11ExamPrep #WorkingNotesAccounting