Depreciation

bengani sebathu
bengani sebathu Just JoinedRegistered Posts: 1
HI al,m having a prob with dealing with depreciation more especially whr there is disposal of an asset.help please,wats the best way of getting it?

Comments

  • Monsoon
    Monsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    What's the bit you're getting stuck on?
    Are you happy with a standard Depn journal, i.e. DR Depreciation Expense and CR Accumulated Depn in the Balance Sheet?
  • crispy
    crispy Trusted Regular SouthamptonRegistered Posts: 456
    Hi,

    You can deal with the disposal in a methodical manner:-

    1: Remove the Asset Original Cost

    Dr. Disposals
    Cr. Fixed Asset - Cost

    2. Remove any Depreciation to date:

    Dr. Fixed Asset - Accum. Depreciation
    Cr. Disposals

    3. Deal with the proceeds

    Dr. Bank/Debtors
    Cr. Disposals

    The balance on your disposals account should represent any profit/loss on the disposal.
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