Disposals Account

nodgers1
nodgers1 Feels At HomeRegistered Posts: 31
Hi, i am working through some past unit 5 papers and i always get stuck on questions which involve depreciation and disposals. i am currently working on June 2009 past paper, and i i am on task 1.2, i can work out the accumulated depreciation, but when it asks to write up the disposals account, my mind just goes blank, could anyone point me in the write direction or give me a way of remembering how to do this?

thanks

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  • sdv
    sdv Experienced Mentor Registered Posts: 585
    nodgers1 wrote: »
    Hi, i am working through some past unit 5 papers and i always get stuck on questions which involve depreciation and disposals. i am currently working on June 2009 past paper, and i i am on task 1.2, i can work out the accumulated depreciation, but when it asks to write up the disposals account, my mind just goes blank, could anyone point me in the write direction or give me a way of remembering how to do this?

    thanks


    Simple

    1 Debit
    2 Credits


    1 debit the DISPOSAL account with costs from the fixed asset a/c

    1 Credit the DISPOSAL account with accumulated depreciation from Prov.For. Dep a/c
    2 Credit the DISPOSAL account with sale proceeds from BANK/CREDITOR/ASSET A/C
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