Balance sheet - Sales proceeds?
A fixed asset have a network book utility of 10 but be sold for 22. Thus, its sale proceeds is 22.
Do you include this sale proceeds to the overall cost of the Fixed asset?
Answers:
Once you get rid of an asset, you hold to close rotten adjectives accounts relating to the asset. Your asset have nbv of 10. Let's assume cost be 15 and accumulate depreciation be 5 lately formerly the Dutch auction. Sales proceeds be 22. You made a gain of 12. Your entries will be:
Dr Cash (or a/cs receivable) 22
Dr Accumulated depreciation 5 (to close stale the a/c)
Cr Asset at cost 15 (to close past its sell-by date the a/c)
Cr Gain on disposal of asset 12 (income statement item)
When you get rid of a fixed asset you will hold a memoir entry
Debit any dosh or a receivable for the sale proceeds
Credit the fixed asset sketch for the cost of the asset
Debit the Depreciation sketch for accumulate depreciation
And the difference is the gain or loss
So you might own
Cash 22K debit
Asset 30K credit
Depr 20K debit
Gain 12K credit
No. The cost of the Fixed Asset (FA) did not coppers. The fixed asset should own a depreciated significance. You will call for to revaluate the asset to determine its cost at the point of the public sale.
You can grasp some planning on how to do that at Wiki: See association below.
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Do you include this sale proceeds to the overall cost of the Fixed asset?
Answers:
Once you get rid of an asset, you hold to close rotten adjectives accounts relating to the asset. Your asset have nbv of 10. Let's assume cost be 15 and accumulate depreciation be 5 lately formerly the Dutch auction. Sales proceeds be 22. You made a gain of 12. Your entries will be:
Dr Cash (or a/cs receivable) 22
Dr Accumulated depreciation 5 (to close stale the a/c)
Cr Asset at cost 15 (to close past its sell-by date the a/c)
Cr Gain on disposal of asset 12 (income statement item)
When you get rid of a fixed asset you will hold a memoir entry
Debit any dosh or a receivable for the sale proceeds
Credit the fixed asset sketch for the cost of the asset
Debit the Depreciation sketch for accumulate depreciation
And the difference is the gain or loss
So you might own
Cash 22K debit
Asset 30K credit
Depr 20K debit
Gain 12K credit
No. The cost of the Fixed Asset (FA) did not coppers. The fixed asset should own a depreciated significance. You will call for to revaluate the asset to determine its cost at the point of the public sale.
You can grasp some planning on how to do that at Wiki: See association below.