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Post Info TOPIC: Disposal of Fixed Asset
Aleksandra


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Disposal of Fixed Asset
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Hi,

Are those correct journal entries for disposal of a fixed asset in a situation when money from sale of the asset has been taken for private use. 

I'll just clarify, that this is Ltd and the Director Loan Account is in credit.

Fixed Asset account  Cr 32000

DL account Dr 20000

FA Accumulated Depr. account Dr 6400

Profit/Loss account  Dr 5600

 

Thank you for any advice. 



-- Edited by Aleksandra on Wednesday 9th of November 2011 02:14:06 PM

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kjmcculloch83


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I'd say it's:

CR Fixed Assets £32000

DR Accumulated Dep £6400

DR Directors Loan £20000

DR Profit on Disposal of Fixed Assets £5600

Though you can break it down into steps by using a Disposal Account.

Remember CR reduces an Asset, DR increases an Asset.

Kris



-- Edited by kjmcculloch83 on Wednesday 9th of November 2011 01:53:05 PM

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Aleksandra


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Posts: 105
Date:
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Hi Kris,

Thanks for your reply. 

Yes, this is exactly what my entries look like in my notebook and I've corrected the post as well. 



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