Summary Grade 11 IEB - Asset Disposal

GRADE 11 IEB

Fixed Assets

, Asset Disposal
·



Asset becomes old/Involved in accidents out-of-date


How can business dispose of Assets
·
sell for cash (Bank)
·
Sell on Credit (Nebtors Control)
owner can take asset for personal use/Drawing
·

can be donated (Donations
· traded in (Creditors Controll
·


Damageh-Scrapped/repair

once an asset is disposed -
all
figures with asset need to be removed from books


steps and J entries


Calculate current
years depreciation
3
·




·
old
·
New

·

Sold



Dr Depreciation
Cr Acc Depreciation

2 . transfer Cost Price of Asset



Dr Asset Disposal
Cr Fixed asset Accounts (rech, Equip
need to calculate
might Asset from Prev
Dep on
years
Asset (till Date of Sale) Balance + Dep Asset for
.
3 transfer total Acc Dep
I
beg on
year
-


on




Acc
Dr
Dep
Ir Asset Disposal