Disposal ofa fixed asset

System

Hiya,

I REALLY HOPE SOMEONE CAN HELP ME.

Please, please can someone tell me the journal entries for the disposal of a fixed asset.

If possible with an explenation for the entries so that I can fully understand what to do!

Cheers

Te

System

Re:Disposal ofa fixed asset

Please see previous responses to the same question under the hyperlinks below;

Sale of an asset; http://forums.aat.org.uk/forums/posts/list/15421.page#87764

Part exchange of an asset; http://forums.aat.org.uk/forums/posts/list/15456.page

Regards,

Robert

System

Re:Disposal ofa fixed asset

Thanks that helps me a lot.

Cheers and sorry for not looking myself!

System

Re:Disposal ofa fixed asset

the journal entries for the disposal of a fixed asset are:

Dr Motor vehicles Accumulated Depreciation
Dr Disposals
Cr Motor Vehicles Cost

System

Re:Disposal ofa fixed asset

Out of interest would the AAT ask a question regarding disposals of the Assets in the year of sale.

I am sure that it is in the syllabus, although my lecturer says that the AAT would not ask to charge depreciation in the year of sale.

System

Re:Disposal ofa fixed asset

I did a past paper earlier regarding disposals of an asset and it said that no depreciation should be included in the year of the sale. So I suppose your tutor is right! However I would expect it in the sim.

System

Re:Disposal ofa fixed asset

I done the sim and there was no question asked on depreciation in the year of sale. So i suppose the AAT will not ask this in the exam.

System

Re:Disposal ofa fixed asset

I suppose not