Disposal of non current asset

shalinisharma

Disposal of non current asset comes in SOFP or Income statement.

CeeJaySix

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).