1 / 15

Asset Disposal

Asset Disposal. Intro – the FOUR STEPS. 1). C. Transfer the cost of the asset being sold to asset disposal Transfer the accumulated depreciation on the asset being sold to asset disposal Record what you sold it for

rowa
Download Presentation

Asset Disposal

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Asset Disposal

  2. Intro – the FOUR STEPS 1) C • Transfer the costof the asset being sold to asset disposal • Transfer the accumulated depreciation on the asset being sold to asset disposal • Record what you sold it for • Calculate and record the profit or loss made on the sale of the asset 2) A 3) S 4) P

  3. Example 2

  4. Example 3

  5. An additional part to step 2 1) C • Transfer the costof the asset being sold to asset disposal • Calculate and record current depreciation on the asset being sold • Transfer the accumulated depreciation on the asset being sold to asset disposal • Record what you sold it for • Calculate and record the profit or loss made on the sale of the asset A 2) 3) S 4) P

  6. An additional part to step 2

  7. Disposal Done now depreciate remaining assets at year end!

  8. Calculated! Now record:

  9. Finish off - balancing

  10. To sum up • Draw a time line – plot the information • Work along the timeline, record transactions as they happen • For a Disposal: go according to 4 steps • C • A < • S • P • When you get to year end: • Calculate and record depr. on REMAINING assets • Balance and close accounts Currdepr Total accdepr

More Related