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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › profit/loss on disposal and part exchange
Hi Mr John,
I need your help to solve this question:
accounting year end 30th June, it purchased an item of plant on 1 April 2005 at cost of $15000,at the date of purchase, the item of plant and equipment had an estimated useful life to the business of five years and an estimated residual value of $2000’This item of plant was traded in for a replacement item on 30 September 2008 at an agreed valuation of $5000.it has been depreciated at 20 percent per annum on a straight line basis, with a pro rated charge in the year of acquisition and disposal. Calculate profit or loss on disposal of the item of plant.
Please do not post the same question twice.
I have replied to your other posting of this.