An asset register showed a carrying amount of $16,865. A non-current asset costing $3,750 had been sold for $1,000, making a loss on disposal of $313. No entries had been made in the asset register for this disposal.
What is the correct balance on the asset register?
Answer
Gain (loss) on disposal = proceeds – carrying amount of disposal
Carrying amount of disposal = proceeds – gain(loss)
| $ | |
| Balance b/d | 16,865 |
| Less: Carrying amount of non-current asset sold (1,000 + 313) | 1,313 |
| 15,552 |