Question by augustbmc: a accounting question: how to record disposals. puckett Co. has office furniture that cost ,000 and that ha
s been depreciated ,000. record the disposal under these assumptions.
(a) it was scrapped as having no value
(b) it was sold for 21,000
(c) it was sold for ,000
Best answer:
Answer by Sandy
If it has office furniture that cost ,000 and that has been depreciated ,000, its net book value would be ,000. Record the disposal under these assumptions.
(a) it was scrapped as having no value
Dr Fixed assets written off ,000 (expense item)
Dr Accumulated depreciation ,000
Cr Office furniture ,000
(b) it was sold for 21,000
Dr Cash ,000
Dr Loss on disposal of office equipment ,000
Dr Accum. depn. ,000
Cr Off. equip. ,000
(c) it was sold for ,000
Dr Cash ,000
Dr Accum. depn ,000
Cr Off. equip. ,000
Cr Gain on disposal of off. equip. ,000
Know better? Leave your own answer in the comments!
Posted in 
