Asset Disposal
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Transcript of Asset Disposal
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Asset Disposal
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Transfer the cost of the asset being sold to asset disposal
Transfer the accumulated depreciation on the asset being sold to asset disposal
Record what you sold it for Calculate and record the profit or
loss made on the sale of the asset
Intro – the FOUR STEPS
1)
2)
3)4)
C
A
SP
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Example 2
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Example 3
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Transfer the cost of the asset being sold to asset disposal
Calculate and record current depreciation on the asset being sold
Transfer the accumulated depreciation on the asset being sold to asset disposal
Record what you sold it for Calculate and record the profit or
loss made on the sale of the asset
An additional part to step 2
1)2)
3)4)
CA
SP
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An additional part to step 2
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Disposal Done now depreciate remaining
assets at year end!
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Calculated! Now record:
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Finish off - balancing
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Draw a time line – plot the informationWork along the timeline, record transactions as they happen
For a Disposal: go according to 4 steps◦C ◦A <◦S◦P
When you get to year end:◦Calculate and record depr. on REMAINING assets
◦Balance and close accounts
To sum up
a) Curr deprb) Total acc depr