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Post Info TOPIC: Fixed Asset Disposal
Marky65


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Fixed Asset Disposal
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Hi

I know I should know this but I am having a really blond moment.

I have a motor vehicle which has some depreciation charged against and has been scrapped, can you please advise as to what the journal entries should be to transfer the loss to the p&l

Thanks for your help

Regards

Mark


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AngelaWBS


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Hi Mark

If there wasn't any money received for the scrapping, then i think it is straight foward in that you;

cr motor vehicle (that then takes that vehicle out of your assets)
dr depreciation (again taking the vehicle out of your depn)

With those two accounts cleared the balance of your journal is the profit/loss of the asset which needs posting to asset disposal in the P&L.

I think that is correct.


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Weebly_one


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CR Fixed Asset Account with Value £A
DR Gain/Loss on Disposal Account £A

DR Fixed Asset Accumulated Dep'n Account with the depreciation charged £B
CR Gain/Loss on Disposal Account £B

If you sold it for some consideration that would also be posted to the P&L account too

Does this help?

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Marky65


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Hi Angela & Weebly One

That is great, thanks so much for your help, I can get my journal posted now.

-- Edited by Marky65 on Tuesday 14th of July 2009 11:03:32 AM

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andrewhudson


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Nice sharing...

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