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Question 19.4 from BPP
Mr John .
1- The profit on sale of non current asset investment .
That 5$ is from ” the proceed of the sale of NCA ” 30.000 $ minus 25.000$ ( investment on SOFP ) ?2- To calculate the purchase of tangible non current asset
On tangible non current asset : Why do they CR tangible non current asset 85.000 ?
That 85.000 is the original cost . It’s not disposal at Carrying amount ( 45.000$) ?3- The receipt from sale of non current is the total of 32.000 ( fixture and fitting ) and sale of non current asset investment (30.000) ?
Thank you1. The profit on sale is always the difference between the proceeds and the carrying value on the SOFP.
2. The brought forward and carry forward amounts are the cost of the assets. When assets are sold we always credit the cost of assets account with the cost of the assets sold and debit the disposal account. Please watch my free lectures on non-current assets.
3. Yes.
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