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Loss on disposal of NCA comes under which category? Distribution expense or Administration expense?
It depends on the type of asset and is the same rule as for depreciation.
If, for example, it is a delivery van, then the loss is a distribution expense.
If it is machines in the factory, then the loss is in cost of sales.
If it is equipment in the office then it is an administration expense.
Thank you tutor.
You are welcome 🙂