Enter Disposals - Disposal Example
There are two examples available for disposals: Partial Disposal Example and Full Disposal Example.
Below are the Cost, Salvage, Amount to Depreciate, Accumulated Depreciation, and Life of an asset. The values in the "Before" column, represent the value of the asset before it's partially disposed. Likewise, the "After" column represents values after the disposal.
| Asset | Before | After | Difference |
|---|---|---|---|
|
Asset Cost |
10,000.00 |
7,000.00 |
3,000.00 |
|
Salvage |
1,000.00 |
700.00 |
300.00 |
|
Amount to Depr |
9,000.00 |
6,300.00 |
2,700.00 |
|
Accum Depr |
2,000.00 |
1,000.00 |
1,000.00 |
|
Life |
5 |
3 |
2 |
The following example displays a partial disposal of an asset:
| Disposal Entry | DR | CR |
|---|---|---|
|
Accum Depr |
1,000.00 |
|
|
Asset Cost |
|
3,000.00 |
|
Gain/Loss |
2,000.00 |
|
The following example displays what the Transactions>Enter Cash Receipts entry looks like after the sale of the asset:
| Disposal Entry | DR | CR |
|---|---|---|
|
Cash Receipt |
500.00 |
|
|
Gain/Loss |
|
500.00 |
Below are the Cost, Salvage, Amount to Depreciate, Accumulated Depreciation, and Life of an asset. The values in the "Before" column, represent the value of the asset before it is fully disposed. Likewise, the "After" column represents values after the disposal.
| Asset | Before | After | Difference |
|---|---|---|---|
|
Asset Cost |
10,000.00 |
0.00 |
10,000.00 |
|
Salvage |
1,000.00 |
0.00 |
1,000.00 |
|
Amount to Depr |
9,000.00 |
0.00 |
9,000.00 |
|
Accum Depr |
9,000.00 |
0.00 |
9,000.00 |
|
Life |
5 |
0 |
5 |
The following example displays a full disposal of an asset:
| Disposal Entry | DR | CR |
|---|---|---|
|
Accum Depr |
9,000.00 |
|
|
Asset Cost |
|
10,000.00 |
|
Gain/Loss |
1,000.00 |
|
The following example displays what the Transactions>Enter Cash Receipts entry looks like after the sale of the asset:
| Disposal Entry | DR | CR |
|---|---|---|
|
Cash Receipt |
1,500.00 |
|
|
Gain/Loss |
|
1500.00 |