• Avatar of John Moffat says

      It would still be under expenses, but would appear as a negative expense.

      (The reason is that a profit or loss on sale occurs because the depreciation that had been charged in previous years was either more or less than it would have been if we had known in advance exactly how much we would sell the asset for. So….the profit or loss on sale is really a ‘correction’ to the depreciation charges.)

    • Avatar of John Moffat says

      The Statement of financial position only shows assets, liabilities and capital.

      Since the car no longer belongs to the company, it can not appear on the Statement.

      What will appear is a higher cash balance (or higher receivables it if was sold on credit) than would otherwise have appeared.

  1. avatar says

    11:57 Is that right or am i doing something wrong?

    Disposal Acc

    How did you get 1700??? Isit not 800 — – 15,000 – 6500-7700 ???

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