Disposals
lmr72
Registered Posts: 10 New contributor 🐸
Hi
Please could some one help me. I'm strugling getting to grips with disposals.
Please could some tell me simply the journal for an aquisition & disposal.
:confused1::confused1:
Thanks
lmr
Please could some one help me. I'm strugling getting to grips with disposals.
Please could some tell me simply the journal for an aquisition & disposal.
:confused1::confused1:
Thanks
lmr
0
Comments
-
Hi
Please could some one help me. I'm strugling getting to grips with disposals.
Please could some tell me simply the journal for an aquisition & disposal.
:confused1::confused1:
Thanks
lmr
When you dispose of an asset it's:
CR fixed asset
DR disposals with original cost
DR disposals with accumulated depreciation
DR disposals with sale proceeds
Fill in the blank in the disposal account with the loss or gain.
There is a fantastic e-learning link on the AAT website for Unit 5, it explains disposals along with many many other things.
Good luck! :thumbup1:0 -
Hello,
To show an easy example:
Asset at Cost of £ 10 with Accum. Depreciation of £ 5 is sold for £ 4. Now without even looking at journals it is easy to see a loss on dispoal of £ 1.
The journals would look like:
1st Remove Asset at Cost
Dr Dispoals £ 10
Cr Asset at Cost £ 10
2nd Remove the Accumulated Depreciation
Dr Accum. Depreciation £ 5
Cr Dispoals £ 5
Last - deal with the proceeds
Dr Bank £ 4
Cr Dispoals £ 4
Draw up the T Account and the disposals should have a brought down balance of £ 1 on Debit side (ie: a loss)0 -
Opps don't know what happened to my 's' key - hope you understand anyway:001_smile:0
-
Thanks for your help.
I will try to get my head around it.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership