journal of a disposal of a fixed asset

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
was wondering for example if i had a building and bought it for £55,000 then sold it for £102,000 what would the complete journal entry be for removing the buiding from the assets of my busness?
I havent picked up my books since sitting the exam in June and am a little rusty on disposals.
Fast response would be greatly appreciated :D

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re: journal of a disposal of a fixed asset

    I've got some notes on this here which might be of some help

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re: journal of a disposal of a fixed asset

    Thankyou your a life saver xxxx

    If aybody else still wants to help it would be most sppreciated.
    The more examples the better :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re: journal of a disposal of a fixed asset

    Suppose we bought for £2500 at the begging of january 01 and we decided to sell it at the end of december 02 agreed by the buyer for £1700 by Cheque

    We are told that that the accumulated depreciation for the Van at the end of December is £694.

    Therefore double entry to dispose the asset is to debit Disposals £2500 Credit Van £2500

    debit Provision for depreciation of Van £694
    credit Disposals £694.

    Debit Bank £1700
    Credit Disposals £1700

    In the disposals Account there is an in balnce of £106 on the credit side.

    Therefore, we debit Loss on Disposals(P&L) £106
    Credit Disposals £106.






  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re: journal of a disposal of a fixed asset

    Thank you,

    Think i remember it all coming back to me now !! :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re: journal of a disposal of a fixed asset

    Hi Chris

    Hope you don't mind, I also printed out your notes and they were most helpful. It's an area I always struggle to get my head round!

    Thanks again

    Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re: journal of a disposal of a fixed asset

    You're welcome, Tracy, that's what they're there for. Glad they were of help.

    Actually, disposals was one of the few areas of FRA I never had any problems with.

    Chris

Categories

Privacy Policy