Disposal
solly
Registered Posts: 10 New contributor 🐸
hiya everyone
really need help on disposal. can someone tell me the accounting treatment for selling a fixed asset and also part exchanging a fixed asset. with that could someone which tell me figure such as the original cost, part exchange allowance etc.
thanks
really need help on disposal. can someone tell me the accounting treatment for selling a fixed asset and also part exchanging a fixed asset. with that could someone which tell me figure such as the original cost, part exchange allowance etc.
thanks
0
Comments
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There are only 3 entries to be made in a disposal a/c.
1 - transfer the debit balance from Fixed Assets at cost a/c to Disposal a/c
2 - transfer the credit balance from Accumulated Depreciation a/c to Disposal a/c
3- Credit Disposal a/c with Sale proceeds and Debit it either in
.................................................. ..........................................a) Bank if cash received
.................................................. ..........................................b) Fixed Asset a/c if payment for part exchange
.................................................. ..........................................c) Sundry creditor if payment against outstanding invoice.
The journals you need to do is what I have mention above!
1) Debit DISPOSAL a/c with cost say...........£10,000
...Credit Motor Vechicle a/c at cost..............................£10,000
2) Debit MV Accumulated dep a/c say...........£ 6,500
...Credit DISPOSAL a/c...............................................£6 ,500
3) Debit MV @ Cost with Part X value say £2,500.............................IF balance of new car Debited to MV at Cost a/c
Credit DISPOSAL with.............................................. £2,500
OR
) Debit Sundry Creditors with Part X value say £2,500.............................IF Full value new car Debited to MV at Cost a/c
Credit DISPOSAL with.............................................. £2,5000 -
Visha.... you're amazing, you just know EVERYTHING. Thanks for all your help to people on this forum0
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thanks0
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