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disposal

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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March 22, 2016 at 4:29 pm #307820
farekhan
Participant
- Topics: 12
- Replies: 6
An asset register showing a carrying value of $67460.A non current asset costing 15000 had been sold for 4000,making a loss on disposal of 1250.no entries had been made in the asset register for this disposal
What is the correct balance on the asset register?
A 42710
B 51210
C 53710
D 62210
Balance b/d 67460
less:carrying value of non current sold
(4000+1250) 5250
=62120
Sir, could u explain me this question?
March 22, 2016 at 5:11 pm #307826
John Moffat
Keymaster
- Topics: 57
- Replies: 54520
If the asset sold made a loss of 1250, then it must have had a carrying value of 5,250.
No entry had been made in the asset register, and so total carrying value needs reducing by 5,250.
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