Tangible non-current assets — OpenTuition Forums

Nnokthu11y ago

I don't understand this question. An organisation's asset registrer shws a carrying value of $145,600. The non current asset account in the norminal ledger shows a carrying value of $135 000. The difference could be due to a disposed asset not having been deducted from the asset register. Which one of the following could represent that asset? The answer from the book is: Asset with disposal proceeds of $15 000 and a profit on disposal of $5,000 How did they arrive at this?

John MoffatTutor11y ago#1

I have no idea because either you have mistyped the question or there is a mistake in the book that you are using!!!! The difference between the asset register and the account in the nominal ledger is 10,600. This means that the possible reason for the difference is that an asset was sold with a carrying value (net book value) of 10,600. According to what you have typed, the net book value of the asset sold must have been 10,000 (the profit is the proceeds less the net book value). But this does not equal 10,000 which is why either you have mistyped, or there is a typing error in the question. Have you watched the free lecture on it on this website?

Nnokthu11y ago#2

Thanks Sir the lectures have been helpful

John MoffatTutor11y ago#3

You are welcome :-)

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