adjustments!!!!

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louise
louise Registered Posts: 49 Regular contributor ⭐
in AAT Level 3 (Level 6 in Scotland)
hello,

i sell an item for 550.00 and the actual cost is 645.00, it says not to adjust the accumulated depn,and there isnt a disposal account.
is it:

cr actual cost to accumulated depn
dr bank with 550.00
suspense ac with 645 0r 550?

please, please explain!!

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  • louise
    louise Registered Posts: 49 Regular contributor ⭐
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    adjustments!!!! 1st thread is wrong
    hello,

    i sell an item for 550.00 and the actual cost is 645.00, it says not to adjust the accumulated depn,and there isnt a disposal account.
    is it:

    cr 645.00 to equipment:cost
    dr bank with 550.00
    suspense ac with 645 0r 550?

    please, please explain!!
  • louise
    louise Registered Posts: 49 Regular contributor ⭐
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    adjustments!!!! the previous thread had a mistake
    hello,

    i sell an item for 550.00 and the actual cost is 645.00, it says not to adjust the accumulated depn,and there isnt a disposal account.
    is it:

    cr 645.00 to equipment: cost
    dr bank with 550.00
    suspense ac with 645 0r 550?

    please, please explain!!
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
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    Do you have an accumulated depreciation figure?
  • louise
    louise Registered Posts: 49 Regular contributor ⭐
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    yes!
    louise
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
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    What is the figure?
  • louise
    louise Registered Posts: 49 Regular contributor ⭐
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    accumulated: 163.50
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
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    I dont understand how you can do this without a disposals account - does it say you can not have one? What are you working from?

    I would

    DR Bank 550
    CR Equipment 645
    DR Acc Dep 163.50

    Then you have a figure of 68.50 to credit the P&L but it should really include

    DR Disposals 645
    CR Disposals 550
    CR Disposals 163.50
    then a balance on this of the 68.50

    I am probably completely wrong though!
  • louise
    louise Registered Posts: 49 Regular contributor ⭐
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    i know its really confusing not having a disposal ac!!!

    thanks for ur help :001_smile:
  • Eva82
    Eva82 Registered Posts: 5 New contributor 🐸
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    Adjustment

    Hi Louise

    You have to

    Cr - 645
    Cr - 68.50 Profit on disposal
    Dr- 163.50 acc depreciation
    Dr - 550 suspense acc

    What you have is: 645 - 163.5 = 481.50 NBV and sold for 550 - 481.5= 68.50 profit on disposal

    Hope that's help. If you need more help I am happy to help.

    :001_smile:

    Eva

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