Help with FRA Paper

System

Has any one got a easy way to learn of how to make the correct journel entries when a vehicle is being disposed off, and buying another one part exhcnage??

Thanks

System

Re:Help with FRA Paper

I always resort to a disposals T account and then do my Journal from there.

I find its an easy way to check and do it step by step, although its only easy if you like T accounts. Its just the way I learned from scratch so I always resort to them if I get confused.

Hope it helps. Good luck for Wednesday - I'm dreading it now!

Alison

System

Re:Help with FRA Paper

The way I deal with it is to do the following:

Get the old asset out of it's existing T-account

Dr Disposal
Cr Asset

Next get rid of the accumulated Depreciation to the Disposals account:

Dr Asset Accumulated Depreciation (or sometimes called Provision for Depreciation)

Cr Disposal

Finally I include any part exchange allownace thus:

Dr New Asset
Cr Disposal

Hope this helps and good luck for Wednesday!

System

Re:Help with FRA Paper

Thanks, 3rd time lucky for me tomorrow, last year I passed the ist paper and failed the second, in December I passed the 2nd paper failed the ist.

Every time i try to do a journel for disposing a fixed asset, i keep getting it wrong, have all day to revise.

Good luck ever one for tomorrow.

System

Re:Help with FRA Paper

i know the feeling, i got confused with those too

also, with working out the new depreciation charges etc

System

Re:Help with FRA Paper

Please see previous responses to similar questions 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