Help with FRA Paper

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Has any one got a easy way to learn of how to make the correct journel entries when a vehicle is being disposed off, and buying another one part exhcnage??

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with FRA Paper

    I always resort to a disposals T account and then do my Journal from there.

    I find its an easy way to check and do it step by step, although its only easy if you like T accounts. Its just the way I learned from scratch so I always resort to them if I get confused.

    Hope it helps. Good luck for Wednesday - I'm dreading it now!

    Alison
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with FRA Paper

    The way I deal with it is to do the following:

    Get the old asset out of it's existing T-account

    Dr Disposal
    Cr Asset

    Next get rid of the accumulated Depreciation to the Disposals account:

    Dr Asset Accumulated Depreciation (or sometimes called Provision for Depreciation)

    Cr Disposal

    Finally I include any part exchange allownace thus:

    Dr New Asset
    Cr Disposal

    Hope this helps and good luck for Wednesday!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with FRA Paper

    Thanks, 3rd time lucky for me tomorrow, last year I passed the ist paper and failed the second, in December I passed the 2nd paper failed the ist.

    Every time i try to do a journel for disposing a fixed asset, i keep getting it wrong, have all day to revise.

    Good luck ever one for tomorrow.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with FRA Paper

    i know the feeling, i got confused with those too

    also, with working out the new depreciation charges etc
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with FRA Paper

    Please see previous responses to similar questions under the hyperlinks below;

    Sale of an asset; http://forums.aat.org.uk/forums/posts/list/15421.page#87764

    Part exchange of an asset; http://forums.aat.org.uk/forums/posts/list/15456.page

    Regards,

    Robert

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