Writing off fixed assets

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi,<BR><BR>I'm having a hard time absorbing the necessary ledger entries for writing off, and part exchanging fixed assets. Can anyone help, or point me towards a useful site?<BR><BR>Thanx :-)

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Writing off fixed assets

    <br><br><< <i>Hi,<BR><BR>I'm having a hard time absorbing the necessary ledger entries for writing off, and part exchanging fixed assets. Can anyone help, or point me towards a useful site?<BR><BR>Thanx :-)</i> >><br><br><BR><BR>It's quite easy after you have did it a few times really. You want to CR the asset cost account, to take out the cost element of the disposed asset. Then you want to DR the aggregate depreciation account to take out the accumulated depreciation.<BR><BR>The double entry of the above then goes into a F.A. disposal account. After making the above two entries you will get your net book value showing as the balance on the disposal account. You then want to credit that account with the amount received, and debit the cost account of the asset gained on part exchange. <BR><BR>If the disposal account then remains a DR balance it's shown on the P+L as an expense; if CR a gain on disposal.<BR><BR>If your writing an asset off, then surely the whole net book value will be shown as an expense ?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Writing off fixed assets

    Thank you :) I think I've got a handle on it now - making a lot more sense.

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