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Depreciation and disposal

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Depreciation and disposal

  • This topic has 0 replies, 1 voice, and was last updated 5 years ago by Hibba.
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  • June 12, 2020 at 3:18 pm #573665
    Hibba
    Member
    • Topics: 9
    • Replies: 2
    • ☆

    Need help with this adjustment in P/L

    On 1 February 2019, the company sold a vehicle for £20,000. While the
    proceeds of the sale were credited to the Disposal account, no other entries
    were made in the books of account in relation to this transaction. The vehicle
    had cost £88,000 in August 2016. The company charges a full year’s
    depreciation in the year of acquisition and no depreciation in the year of
    disposal. Vehicles: 25% straight line depreciation policy

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