Disposal of an Asset account: Professional Question @ JIDEX Academy скачать в хорошем качестве

Disposal of an Asset account: Professional Question @ JIDEX Academy

Disposal of an asset account is used to determine the profit or loss on the sales of an asset. However they’re some account that needs to be prepared before before determining the profit on disposal. These are: 1. Asset account 2. Accumulated Depreciation account 3. Disposal of Asset account QUESTION. motor van was purchased by a bookshop on 1 July 2014 for ¢10,000,000 and sold on 30 June 2016 for ¢8,200,000. The firm’s accounting year ends on 31 December each year. Motor vans are depreciated at 10% per annum on cost. Full year depreciation is charged in the year of purchase but none in the year of sale. The asset is not expected to have any residual value on date of sale. What’s the profit on disposal of the motor van ?