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Ledger entries of asset register

AAvaz5y ago
Hi John, An asset register showed a carrying value of $67,460 . A non-current asset costing $15,000 had been sold for $4,000 , making a loss on disposal of $1,250 . No entries had been made in the asset register for this disposal , What’s the correct balance on the asset register ? Can you explain this with ledger entries, please? Non Current asset Account Acc Dep Acc Dispo Acc Dr 67460 Cr Disposal 15 000 DR Disp 9750 Cr b/d 9750 NonCur 15000 Cr Acc De9750 c/d 52460 Acc Rece 4000 Loss on Dis 1250 what confuse me is that I am getting 52460 instead of 62210 because the carrying value in asset register should be 67460-[15000-9250=5250]=62210;----- 9250 is the accumulated depreciation. Yes, I know that I don't have to do ledger entries for this question but I want to check whether I understand it correctly or not Shouldn't I get the same carrying number for new asset register and non current asset? Sorry, it might be a little bit confusing.
AAvaz5y ago#1
DR non curren asset account 67460 Cr non current asset account 15000 Balancing figure c/d 52460
John MoffatJohn MoffatTutor5y ago#2
The total carrying value in the asset register should be the same as the total carrying value in the ledgers. Given that the loss on disposal was $1,250, the carrying value of the assets sold must have been $5,250. Therefore the correct value in the asset value after the sale is $67,460 - $5,250 = $62,210. We cannot write up the ledger accounts in full because we are not told the initial cost and accumulated depreciation of all of the assets (only of the one that is sold).
AAvaz5y ago#3
Thank you for quick reply! have a nice day!
John MoffatJohn MoffatTutor5y ago#4
You are welcome :-)
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