Loss on disposal in accounts

[david@purpleaccounts.com]

Disposal

The depreciation calculation depends on the accounting policy adopted by your company. I am assuming that you don't calculate depreciation on a monthly basis, and that you don't calculate depreciation on assets that have been disposed of during the year.

The accounting entries will be;
cr fixed assets (balance sheet)
dr accumulated depreciation (balance sheet)

dr cash (balance sheet)
dr loss on disposal (p&l)

PM me if you want to discuss further.

[xoggoth]

Disposed of ancient company van and brought new one and not sure how to handle this in fixed assets.

Cost section removes old van cost and adds new and loss on disposal is depreciated value of old van less what what I sold it for and I expect to end up with book value equal to new van cost less the year's depreciation.

It's the total depreciation from previous year I can't figure out, obviously the figure carried forward based on the total depreciation of old van is not appropriate. Do I add a line subtracting depreciation of disposed equipment?

Grateful for any examples from their accounts involving sale of assets.