• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Disposal on non current assests

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Disposal on non current assests

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 28, 2015 at 8:13 am #273930
    sharifmangalzai
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Dear sir,
    when we dispose of a non current asset: why we are record disposal account as Dr and Cr non current asset cost.
    when we record a transaction there will be increase or decrease in five element ( asset, liability, Revenue, capital, liability) then in this explanation why we record disposal account as Dr, in which element increase or decrease have been made .

    September 28, 2015 at 8:26 am #273939
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    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.)

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • askar.turganbayev@gmail.com on AA Chapter 2 Questions
  • RashidMh on MA Chapter 1 Questions Accounting for Management
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in