Sell the asset Multi-color System (Tinting Machine) back to Supply

Hi, my company want to sell the asset Multi-color System (Tinting Machine) back to Supply, should i issue a tax invoice to supplier, right? How to do this double entry? Is it mean disposal of machine?

Example:  Tinting Machine that bought at 2009 price is RM 50,000.00, now we sell the machine to the supplier price is RM 1,000.00 (inclusive of GST). How to do this double entry and tax code?

Please guide me, tq.

Asked on January 18, 2018 2018-01-18 01:20:24 Business (商家)
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1 Answer(s)

Yes you need to issue tax invoice and account for GST @ 6% (SR) because this is considered as sale or disposal of assets.  The accounting double entry is as follows :

DR. Customer (The buyer) – RM1,000.00 – Tax code is OS
CR. Disposal of Fixed Assets (The disposed machine) – RM943.40 – Tax code is OP
CR. GST Output Tax Payable – RM56.60

DR. Accumulated Depreciation (On the machine depreciated since 2009) – RM ?? – Tax code OP
CR. Disposal of Fixed Assets (The disposed machine) – RM ?? – Tax code OP

DR. Disposal of Fixed Assets (The disposed machine) – RM50,000.00 – Tax code OP
CR. Fixed Assets (The disposed machine at cost) – RM50,000.00 – Tax code OP

Answered on January 18, 2018. 2018-01-18 03:14:30
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