Disposals ????

Hey can someone help with what these are what you do to transfere the Profit/loss when you sell a fixed asset and anything to do with this.

Thanks peeps

Vic :001_smile:


  • Nilesh Mandvia
    Nilesh Mandvia Registered Posts: 91 ? ? ?

    Have a look at the following thread which explain how to dispose of an asset in Sage. In the following example, it was presumed that a loss was made on sale of an asset, hence DEBIT PROFIT AND LOSS A/C.


    Also there was an article in AAT's megazine August-2008 publication. There is no mention of VAT in the article!!!

  • A-Vic
    A-Vic Registered Posts: 6,970
    Thanks for that :thumbup1:.

    However thats maily concerned with treatment in sage i also need to ask how it would be written if at all in the ETB and what you do with it from there.
  • Esme
    Esme Registered Posts: 711
    when you dispose of an asset you put the initial cost of the asset onto the r side of the disposal account, then you put the accumulated depreciation and how much the asset was sold for onto the credit side. You then balance the disposal account to find the profit or loss which is then transfered to the profit and loss account.
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?

    You start with a DR figure in the Asset account and a CR figure in the accumulated depreciation account.

    You therefore CR Asset DR disposals, and DR acc depn and CR disposals.
    You then DR bank with the sale proceeds and CR disposals.

    The balance on the disposals account is written off to the P&L account. :)
  • A-Vic
    A-Vic Registered Posts: 6,970
    Wonderful thanks all :001_smile:
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