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A machine is currently recorded in the books of a business with a cost of 10000 and accumulated depreciation of 3000 the machine is sold for 8000 account for disposal?
Wiki User
∙ 14y ago
Accounting Entry:
[Debit]Cash 8000
[Debit]Accumulated Depreciation 3000
[Credit] Machine 10000
[Credit]Profit on Sale 1000
Wiki User
∙ 14y ago
Wiki User
∙ 14y ago[Debit]Cash 8000
[Debit]Accumulated Depreciation 3000
[Credit] Machine 10000
[Credit]Profit on Sale 1000
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What is the treatment of accumulated depreciation and depreciation in the event of asset disposal?
When the asset is disposed of the Accumulated Depreciation is subtracted from the cost of the asset. Journal Entries: If Sold at a Profit: Dr Accumulated Depreciation (All Depreciation) Dr Bank/ Recievable (Amount received for Asset) Cr Asset (Carrying Value on Balance Sheet) Cr Profit on Asset Disposal (Balancing Figure) If Sold at a Loss: Dr Accumulated Depreciation (All Depreciation) Dr Bank/ Recievable (Amount received for Asset) Dr Loss on Asset Disposal (Balancing Figure) Cr Asset (Carrying Value on Balance Sheet) Please note there may also be current year depreciation
How do you calculate disposal of fixed assets?
[Debit] Accumulated depreciation [Debit] Loss on disposal (if any) [Credit] Asset [Credit] Profit on disposal (if any)
What are proceeds from disposal of assets?
Proceeds from disposal of assets is equal to = Total cost of disposed assets- Accumulated depreciation related to assets disposed+ Profit on sale of fixed assets
What is the journal entry to write of an asset that is not completely depreciated?
[Debit] Accumulated Depreciation [Debit] Cash (If any) [Debit] Loss on disposal (if any) Credit Asset Credit Profit of disposal of asset (if any)
When a fixed asset is disposed which account is debited?
Accumulated depreciation as well as any loss on disposal as well as if any cash received these three accounts are debited.
What is the journal entries for disposal of fixed asset?
cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account
What happens to accumulated depreciation when a piece of equipment is sold Does it go up or down or is it not affected?
The accumulated depreciation relating to the piece of equipment will be eliminated from the accounts when the company disposes of the asset. The double entry for the sale of a piece of equipment would be-DR Cash/Bank (with the proceeds)DR Accumulated depreciation (with the total depreciation held for that asset)CR Equipment (with the original cost of the equipment)DR/CR Profit/loss on disposal (with the difference between the proceeds and the NBV of the asset at the time of sale).
What is the entry for disposing of an asset?
[Debit] Accumulated Depreciation xxxx [Debit] Loss on disposal (if any) xxxx (Debit) cash received (if any) xxxx (Credit) Asset account xxxx (Credit) Gain on disposal (if any) xxxx
What is the journal entry to record fixed asset disposals?
[Debit] Accululated Depreciation xxxx [Debit] Loss on disposal of asset xxxx [Credit] Asset account xxxx Entry 2 [debit] Profit and loss account xxxx [Credit] Loss on disposal of asset xxxx
What is the journal entry to write off a fully depreciated asset?
[Debit] Cash (if any) xxxx [Debit] Accumulated depreciation xxxx [Debit] Loss on disposal of asset (if any) xxxx [Credit] Asset account xxxx [Credit] Profit on disposal of asset(if any)xxxx
What is the journal entry to remove a vehicle that is traded in before it is fully depreciated?
[Debit] Accumulated depreciation [Debit] New Asset [Debit] Loss on disposal (if any) [Credit] Old asset [Credit] Profit on disposal (if any) [Credit] Cash paid (if any)
How do you remove old vehicle from balance sheet?
[Debit] Accumulated Depreciation xxxx [Debit] Loss on disposal of asset (if any) xxxx [Debit]Cash received (if any) xxxx [Credit] Vehicle account xxxx [Credit]Profit on disposal of asset (if any) xxxx
