ETB/Disposal

Hi,

Something i cant get my head round is that if i have a trial balance then have a disposal to input on the ETB adjustment columns why is it that the fixed asset account did not include the disposal on the initial trial balance if the disposal was done 'at some time during the year'? I thought that the trial balance was a list of all the current balances on the last day of the period?

Hope this question makes sense to someone!

Thankyou

Darron

Comments

  • AK002
    AK002 Registered Posts: 2,492
    To some degree some of the things that appear in questions are there purely so they can test your knowledge and technique, wouldn't be much of an exam if there was a perfect TB and all you had to do was put it into a set of accounts, lol.

    The same goes for Business tax for example where you have to disallow capital expenditure on a tax comp, if the accounts were prepared properly a capital addition would be in the balance sheet already.
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