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Correction of errors

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

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May 4, 2016 at 1:25 pm #313680
abrizni10
Member
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A non current asset with a carrying value of $ 7890 was disposed of for $9000. The only accounting entry was to debit cash
I credited suspence account and debited cash account 9000
But I’m wrong again 🙁 The book had debited suspence account and credited disposal?
May 4, 2016 at 5:38 pm #313701
John Moffat
Keymaster
- Topics: 57
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The book is correct.
When they dispose of an asset they should debit cash and credit disposal account.
They did debit cash, so that is OK, but they did not credit anywhere.
So to make it correct they need to credit the disposal account and debit the suspense account.
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