adjustments!!!!

louise

hello,

i sell an item for 550.00 and the actual cost is 645.00, it says not to adjust the accumulated depn,and there isnt a disposal account.
is it:

cr actual cost to accumulated depn
dr bank with 550.00
suspense ac with 645 0r 550?

please, please explain!!

louise

adjustments!!!! 1st thread is wrong
hello,

i sell an item for 550.00 and the actual cost is 645.00, it says not to adjust the accumulated depn,and there isnt a disposal account.
is it:

cr 645.00 to equipment:cost
dr bank with 550.00
suspense ac with 645 0r 550?

please, please explain!!

louise

adjustments!!!! the previous thread had a mistake
hello,

i sell an item for 550.00 and the actual cost is 645.00, it says not to adjust the accumulated depn,and there isnt a disposal account.
is it:

cr 645.00 to equipment: cost
dr bank with 550.00
suspense ac with 645 0r 550?

please, please explain!!

Emma1708

Do you have an accumulated depreciation figure?

louise

yes!
louise

Emma1708

What is the figure?

louise

accumulated: 163.50

Emma1708

I dont understand how you can do this without a disposals account - does it say you can not have one? What are you working from?

I would

DR Bank 550
CR Equipment 645
DR Acc Dep 163.50

Then you have a figure of 68.50 to credit the P&L but it should really include

DR Disposals 645
CR Disposals 550
CR Disposals 163.50
then a balance on this of the 68.50

I am probably completely wrong though!

louise

i know its really confusing not having a disposal ac!!!

thanks for ur help :001_smile:

Eva82

Adjustment

Hi Louise

You have to

Cr - 645
Cr - 68.50 Profit on disposal
Dr- 163.50 acc depreciation
Dr - 550 suspense acc

What you have is: 645 - 163.5 = 481.50 NBV and sold for 550 - 481.5= 68.50 profit on disposal

Hope that's help. If you need more help I am happy to help.

:001_smile:

Eva