Grade 11 ieb - Accounting summary’s, Asset Disposal - this is summarized to help you go over everything on Asset Disposal for exams. Paper 1 - this goes over everything for this topic in depth - accounts, fin statements, and calculations and more
Asset becomes old/Involved in accidents out-of-date
How can business dispose of Assets
·
sell for cash (Bank)
·
Sell on Credit (Nebtors Control)
owner can take asset for personal use/Drawing
·
can be donated (Donations
· traded in (Creditors Controll
·
Damageh-Scrapped/repair
once an asset is disposed -
all
figures with asset need to be removed from books
steps and J entries
Calculate current
years depreciation
3
·
·
old
·
New
·
Sold
Dr Depreciation
Cr Acc Depreciation
2 . transfer Cost Price of Asset
Dr Asset Disposal
Cr Fixed asset Accounts (rech, Equip
need to calculate
might Asset from Prev
Dep on
years
Asset (till Date of Sale) Balance + Dep Asset for
.
3 transfer total Acc Dep
I
beg on
year
-
on
Acc
Dr
Dep
Ir Asset Disposal
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