[adli82]

Thank you , I will have a look that.

Have a good day

[adli82]

thank you I get it now

[adli82]

Thank a lot John , that really help me a lot to improve basic accounting knowledge

[adli82]

Many thank for the explanation

[adli82]

I understand now , as the depreciation was included full charge on the asset was sold.

so adjustment needed to correct the accumulated depreciation .

I done this question before and found difficult to understand what is actually the question was asked 🙁

Thank your help again

[adli82]

Dr Disposal account Cr Asset account with 1,400,000 (to remove the cost)
Dr Accum Depn Cr Disposal account with 700,000 (to remove the accum depn)

after we remove the 700 000 on accum Depn , why we need to adjust the 1400 x 25% ?

like we adding back to retained earning .

Because we just removed the Accum Depn 700 000 . I just want to see the link removal 700 000 and adjustment on 1400 x 25%.

Thank for your help

[Author]

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