The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Anyone know about dealing with sale of fixed assets and depreciation please?
Post Info TOPIC: Anyone know about dealing with sale of fixed assets and depreciation please?
Alison


Senior Member

Status: Offline
Posts: 357
Date:
Anyone know about dealing with sale of fixed assets and depreciation please?
Permalink Closed

Hi

Does anyone know about sale of fixed assets and depreciation please?  We had retail premises which we closed in November 2009 but had the premises until March 2010 and sold of quite a lot of fixed assets on ebay after we had closed.  I have left things quite late as deadline with companies house is 31st July 2011 and on maternity leave until then so having to use a KIT day to get it done but just gone brain dead and cannot remember how to deal with sale of fixed assets and depreciation.  The fixed assets were depreciated in first year of trading at 25%.

Thanks in advance on any advise.

 

 

 



__________________
gbm


Guru

Status: Offline
Posts: 896
Date:
Permalink Closed

Hi Alison,

Very simple example:

Assuming asset purchased in yr 1 for £1,000

Depreciation would be £1,000 x 25% = £250

Written down value (WDV) carried forward would be £750

Now assuming asset sold for £600 on ebay (presume yr 2 is the current year you are working on, y/e 31.10.10)

The entries to clear would be:

Dr cash £600
Cr fixed asset cost £1,000
Dr fixed asset depreciation £250
Dr loss on disposal £150

All the dr's = £1,000, the same as the cr

The loss on disposal is the difference between the WDV b/f £750 and the disposal £600

HTH


__________________

 

Regards,
Nick

Website: www.gbmaccounts.co.uk
Twitter

Factsheet | Starting a Business

 
Alison


Senior Member

Status: Offline
Posts: 357
Date:
Permalink Closed

Thanks for that, very helpful.

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Anyone know about dealing with sale of fixed assets and depreciation please?
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About