journal of a disposal of a fixed asset

System

was wondering for example if i had a building and bought it for £55,000 then sold it for £102,000 what would the complete journal entry be for removing the buiding from the assets of my busness?
I havent picked up my books since sitting the exam in June and am a little rusty on disposals.
Fast response would be greatly appreciated

System

Re: journal of a disposal of a fixed asset

I've got some notes on this here which might be of some help

Chris

System

Re: journal of a disposal of a fixed asset

Thankyou your a life saver xxxx

If aybody else still wants to help it would be most sppreciated.
The more examples the better

System

Re: journal of a disposal of a fixed asset

Suppose we bought for £2500 at the begging of january 01 and we decided to sell it at the end of december 02 agreed by the buyer for £1700 by Cheque

We are told that that the accumulated depreciation for the Van at the end of December is £694.

Therefore double entry to dispose the asset is to debit Disposals £2500 Credit Van £2500

debit Provision for depreciation of Van £694
credit Disposals £694.

Debit Bank £1700
Credit Disposals £1700

In the disposals Account there is an in balnce of £106 on the credit side.

Therefore, we debit Loss on Disposals(P&L) £106
Credit Disposals £106.

System

Re: journal of a disposal of a fixed asset

Thank you,

Think i remember it all coming back to me now !!

System

Re: journal of a disposal of a fixed asset

Hi Chris

Hope you don't mind, I also printed out your notes and they were most helpful. It's an area I always struggle to get my head round!

Thanks again

Tracy

System

Re: journal of a disposal of a fixed asset

You're welcome, Tracy, that's what they're there for. Glad they were of help.

Actually, disposals was one of the few areas of FRA I never had any problems with.

Chris