Disposal on non current assests

A non-current asset is a debit balance. Therefore when the asset is sold, we need to credit the account to remove the balance. The double entry is to debit the disposal account and it is in the disposal account that we calculate the profit or loss on disposal. You really need to watch the free lectures on depreciation - our lectures are a complete course covering everything you need to pass F3 well. (To think of transactions as increasing or decreasing five elements is not the way to think about double entry - again I do suggest that you watch all of our free lectures.)