Hi,
Maybe a silly question but what is double entry for a non-current asset disposal when the asset is already fully depreciated and scrapped with no proceeds?
I recorded:
Dr Accumulated depreciation a/c
Cr Fixed Asset a/c
... and I was told that I missed something. I don't know what could that be?! No proceeds, fully depreciated... so it's only 2 entries. No? What is missing?
Should entries go through disposal a/c even though it would be in and out (Dr and Cr with the same amount) situation?
ACCA Forums
FANCA disposal (need advice)
8y ago#1Normally we would go through a disposal account because normally there will be scrap proceeds.
However in this example, your entry is fine :-)
Thank you John.
Hi can u tell me If that is the correct steps to find the profit or loss of an non current asset
Non current asset cost X
Less: Residual value (X)
Net book value X
Less: depteciation (X)
Carrying amount X
Less: proceeds ( X)
Profit/loss X/(X)
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