Depreciation

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bengani sebathu
bengani sebathu Registered Posts: 1 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
HI al,m having a prob with dealing with depreciation more especially whr there is disposal of an asset.help please,wats the best way of getting it?

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  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    What's the bit you're getting stuck on?
    Are you happy with a standard Depn journal, i.e. DR Depreciation Expense and CR Accumulated Depn in the Balance Sheet?
  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉
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    Hi,

    You can deal with the disposal in a methodical manner:-

    1: Remove the Asset Original Cost

    Dr. Disposals
    Cr. Fixed Asset - Cost

    2. Remove any Depreciation to date:

    Dr. Fixed Asset - Accum. Depreciation
    Cr. Disposals

    3. Deal with the proceeds

    Dr. Bank/Debtors
    Cr. Disposals

    The balance on your disposals account should represent any profit/loss on the disposal.

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