Question

How to calculate the disposal of fixed assets?

Answer 1

• The calculation of disposal of fixed assets can be made by debiting accumulated depreciation and then crediting the fixed asset account.

• In case of loss, debit the amount received then debit the depreciation amount, then provide or debit the loss of the asset account, and credit the fixed asset account.

• In case of profit, debit the amount received, then debit the depreciation account, credit the fixed asset account, and finally credit the sale of the asset account.

Also see:

• What Are Current Assets?
• Fixed Assets Vs Current Assets