Fixed Assets register (carrying amounts) Please Help!!!!

I have done two mock exams one on the AAT website and one with my training provider. In task 1 it is about the fixed asset register and I am confused by the carrying amount. If depreciation is charged for full months and you sell the asset in the first half of the financial year. So charge 6 months depreciation. Is the carrying amount nil or do you put the carrying amount even if you have put disposal proceeds and date of sale. I have two completely different answers and there is no mention of this in any of my books!!

Comments

  • stevefstevef Well-Known CarmarthenPosts: 258Registered
    If you have sold the non current asset, it can not have a value in your balance sheet.As part of the disposal transactions both the gross book value and depreciation are taken to nil, with any loss or surplus on disposal charged to revenue.
  • vickimcsheevickimcshee Posts: 7Registered
    So say
    Acquisition date Cost Dep. Charges Carrying Am. DP DD
    Computer 12/04/X0 2,000 250.00 Nil 100.00 1/10/X0

    I just want to be 100% that this is correct I have googled but I come up with nothing. Ive also read my books cover to cover and still nothing.
    Thank-you ever so much for commenting I have my ACPR exam on tuesday and want to be fully prepared. Thank-you again :)
  • vickimcsheevickimcshee Posts: 7Registered
    Sorry it was more spaced out in my box!!
  • rakeshsuwalrakeshsuwal LondonPosts: 79Registered
    Am I looking correct acquisition-12/04/×0; cost-2000; depn charge-250; carrying-Nil; Disposal 100 01/10/×0?
    If it is so it's fine. When you dispose any Non-food current asset. Your final value is zero. The non current register don't show if it's profit or loss in disposal. It only shows the real figure entry and removal of disposed item value. So final value is Nil. Also as a note, some company may not charge depreciation on sale or disposed year. So you may see Nil in depn charge too.
    vickimcshee
  • vickimcsheevickimcshee Posts: 7Registered
    Thank-you so much! I didn't think AAT would be wrong. I'm glad I was right as I had lost a lot of confidence at getting it marked wrong (I'm too much of a perfectionist and like to get 100%). Your comments have been a big help!
    rakeshsuwal
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