Non-Current Asset Formats: Disposal Account Format (Copy)
Disposal Account Format
Standard Disposal Account Layout (Exam-Preferred)
Disposal Account
| Debit (Dr) | Amount | Credit (Cr) | Amount |
|---|---|---|---|
| Date | Asset Cost | xxxx | Date |
| Date | Expenses Of Disposal | xxxx | Date |
- Disposal Account Used To Calculate Profit Or Loss On Disposal
- Asset Cost Always Debited
- Accumulated Depreciation Always Credited
- Proceeds Credited
- Balance Represents Profit Or Loss
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Disposal Account Showing Profit On Disposal
Disposal Account
| Debit (Dr) | Amount | Credit (Cr) | Amount |
|---|---|---|---|
| Asset Cost | xxxx | Accumulated Depreciation | xxxx |
| Proceeds | xxxx | ||
| Profit On Disposal | xxxx |
- Profit Appears On Credit Side
- Profit Transferred To Income Statement
Disposal Account Showing Loss On Disposal
Disposal Account
| Debit (Dr) | Amount | Credit (Cr) | Amount |
|---|---|---|---|
| Asset Cost | xxxx | Accumulated Depreciation | xxxx |
| Loss On Disposal | xxxx | Proceeds | xxxx |
- Loss Appears On Debit Side
- Loss Transferred To Income Statement
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Disposal Account Without Date Column (Accepted)
Disposal Account
| Debit (Dr) | Amount | Credit (Cr) | Amount |
|---|---|---|---|
| Asset Cost | xxxx | Accumulated Depreciation | xxxx |
| Expenses Of Disposal | xxxx | Proceeds | xxxx |
| Loss / Profit | xxxx |
- Used When Dates Are Not Provided
- Labels Must Be Clear
Disposal Account With Partial Disposal (Format)
Disposal Account
| Debit (Dr) | Amount | Credit (Cr) | Amount |
|---|---|---|---|
| Part Cost Of Asset | xxxx | Accumulated Depreciation (Part) | xxxx |
| Proceeds | xxxx | ||
| Profit / Loss | xxxx |
- Only Cost And Depreciation Of Disposed Portion Recorded
- Remaining Asset Continues In Asset Account
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Disposal Account Presentation Rules (Exam Scoring)
- Asset Cost Always Debited
- Accumulated Depreciation Always Credited
- Proceeds Credited
- Profit Or Loss Balanced And Transferred
- Disposal Account Closed After Use
Transfer Of Profit Or Loss Format
- Profit On Disposal → Income Statement (Credit)
- Loss On Disposal → Income Statement (Debit)
Common Labels Used In Disposal Account
- Asset Cost
- Accumulated Depreciation
- Proceeds
- Profit On Disposal
- Loss On Disposal
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Compact Disposal Account Format (Short Questions)
Disposal Account
| Dr | Cr |
|---|---|
| Cost xxxx | Accumulated Depreciation xxxx |
| Loss xxxx | Proceeds xxxx |
| Profit xxxx |
One-Glance Emergency Exam Template
Disposal Account
Debit: Cost, Expenses
Credit: Accumulated Depreciation, Proceeds
Balance = Profit Or Loss