Disposal Of Fixed Asset - Calculating Gain/Loss

by KTUAN
(MALAYSIA)

MY COMPANY HAVE A NEW MOTOR VEHICLE WITH $54860.50 ,ACCUMULATED DEPRECIATION IS $10972.10, SO HOW TO CALCUTAR THE GAIN / LOSS OF DISPOSAL?

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Aug 21, 2010 Disposal of Fixed assets by: Are We Are-sharemethat You have take into consideration also whether there is revaluation done for the asset and a particular reserve is created for the same. If there is a reserve adjust the gain or loss against this reserve before taking the net figure to income statement. X Close Editor Aug 21, 2010 Rating Submitted by: Are We Are-sharemethat Title Comment You have take into consideration also whether there is revaluation done for the asset and a particular reserve is created for the same. If there is a reserve adjust the gain or loss against this reserve before taking the net figure to income statement. Cancel Delete Delete & Ban Updating Comments page...

Feb 10, 2010 Disposal Of Fixed Asset - Calculation by: Ana Orwel Gain or loss on disposal of fixed asset is a difference between sales revenue (if the asset was sold) and net book value. In your exmaple there is no sales revenue indicated, sol et us alsume it is 0. Net book value of the asset at the moment of disposal is: $54860.5-$10972.1=$43888.40 Since the sales revenue is 0, total net book value amount will be recorded as a loss on disposal of the motor vehicle. In case the vehicle was sold, sales revnue are compared with the net book value and then gain or loss on disposal is calculated. For exact accounting entries and practical example you can go to this page on this web site: http://www.bookkeeping-financial-accounting-resources.com/disposal-of-fixed-asset.html X Close Editor Feb 10, 2010 Rating Submitted by: Ana Orwel Title Comment Gain or loss on disposal of fixed asset is a difference between sales revenue (if the asset was sold) and net book value. In your exmaple there is no sales revenue indicated, sol et us alsume it is 0. Net book value of the asset at the moment of disposal is: $54860.5-$10972.1=$43888.40 Since the sales revenue is 0, total net book value amount will be recorded as a loss on disposal of the motor vehicle. In case the vehicle was sold, sales revnue are compared with the net book value and then gain or loss on disposal is calculated. For exact accounting entries and practical example you can go to this page on this web site: http://www.bookkeeping-financial-accounting-resources.com/disposal-of-fixed-asset.html Cancel Delete Delete & Ban Updating Comments page...

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