Depreciation is a non cash item, but how profit or loss on disposal of non current asset is a non cash item? As we actually recieve more proceed than carrying value of disposed asset in case of profit on disposal.
Ask the Tutor ACCA FR
Non cash items
11y ago#1I've just sold my car - how much profit did I make?
Let me ask a different question with the same hidden message!
I've just sold my car and made a profit of $200 - how much cash did I receive?
Profits and losses on asset disposals are NOT the same as cash proceeds
Message understood?
Got it Hundred nd ten percent.
Thanks a lot
11y ago#3You're welcome
Sign in to reply to this topic.