Disposal of non current asset

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shalinisharma
shalinisharma Registered Posts: 25 Dedicated contributor 🦉
Disposal of non current asset comes in SOFP or Income statement.

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  • CeeJaySix
    CeeJaySix Registered Posts: 645
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    It affects both. Asset at cost and accumulated depreciation will both be reduced and proceeds increase bank (or cost if p/ex) in balance sheet, profit or loss on the sale goes in the P&L (disposals account brings together cost, depreciation and proceeds of sale to net off profit/loss).
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