Disposal of a Fixed Asset (Grade 11 NSC Matric Accounting): Flashcards

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Disposal of a Fixed Asset
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Disposal of fixed asset meaning

Removing an asset from business records

Carrying value formula

extCostprice−extAccumulateddepreciation ext{Cost price} - ext{Accumulated depreciation}

Pro rata depreciation formula

ext{Annual deprec.} imes rac{ ext{Months owned}}{12}

Profit/loss on disposal formula

extAmountreceived−extCarryingvalue ext{Amount received} - ext{Carrying value}

Four key info pieces for disposal

Cost price, accum. deprec., disposal amt, profit/loss

Profit on disposal occurs when

Amount received >> Carrying value

Loss on disposal occurs when

Amount received << Carrying value

Asset disposal account final balance

Zero (must balance to zero)

Five disposal methods

Cash sale, credit sale, trade-in, withdrawal, donation

Accumulated depreciation meaning

Total depreciation charged from purchase to disposal date

Explore Grade 11 NSC Matric Accounting Revision Notes by Topics

Ethics

Internal Control

Fixed Assets

Inventory Systems

Explore Grade 11 NSC Matric Accounting Model Answers by Topics

Ethics

Internal Control

Fixed Assets

Inventory Systems

Explore Grade 11 NSC Matric Accounting Quizzes by Topics

Ethics

Internal Control

Fixed Assets

Inventory Systems

Explore Grade 11 NSC Matric Accounting Exam Questions by Topics

Ethics

Internal Control

Fixed Assets

Inventory Systems

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