Disposal of a Fixed Asset (Grade 11 NSC Matric Accounting): Quizzes
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Practise the questions
10 questions from this quiz
What are the disposal methods for a fixed asset?
What are the disposal methods for a fixed asset?
Cash, credit, trade, withdrawn, donated
Which four pieces of info are needed for asset disposal?
Which four pieces of info are needed for asset disposal?
Cost, depreciation, proceeds, profit/loss
An asset cost R8 000 with R3 000 accum. depreciation. What is carrying value?
An asset cost R8 000 with R3 000 accum. depreciation. What is carrying value?
R5 000
Annual depreciation is R2 000. Asset owned 6 months. What is pro rata depreciation?
Annual depreciation is R2 000. Asset owned 6 months. What is pro rata depreciation?
R1 000
Asset sold for R7 000 with carrying value R5 000. What is profit/loss?
Asset sold for R7 000 with carrying value R5 000. What is profit/loss?
R2 000 profit
When does a profit on disposal occur?
When does a profit on disposal occur?
Amount received more than carrying value
After all disposal entries, what should Asset disposal account balance be?
After all disposal entries, what should Asset disposal account balance be?
Zero
What happens to the cost price of an asset over time?
What happens to the cost price of an asset over time?
Never changes
When must pro rata depreciation be calculated?
When must pro rata depreciation be calculated?
When disposed of mid-year
What is the correct order of journal entries for disposal?
What is the correct order of journal entries for disposal?
Cost, depreciation, proceeds, profit/loss