The following information was disclosed in the financial statements of Lowland for the year ended X9.
| X8 | X9 | |
| $ | $ | |
| Plant & Equipment cost | 246,900 | 422,900 |
| Accumulated depreciation | 123,450 | 245,450 |
During the year, the following occurred in respect of Plant & Equipment:
| Purchase of plant and equipment | 276,000 |
| Depreciation charged on plant and equipment | 207,000 |
| Loss on disposal of plant and equipment | 10,350 |
What were the sales proceeds received on disposal of the plant and equipment?
Suggested solutions
| Opening Balance | 246,900 | Disposal | ??? |
| Purchase of new plant | 276,000 | ||
| Closing Balance | 422,900 | ||
| Cost of plant and equipment disposed of | 100,000 |
| Disposal | ??? | Opening Balance | 123,450 |
| Depreciation charged | 207,000 | ||
| Closing Balance | 245,450 | ||
| Accumulated depreciation of plant and equipment disposed of | 85,000 |
| Cost of disposal | 100,000 |
| Depreciation charged on disposal | 85,000 |
| Carrying Value on disposal of plant and equipment | 15,000 |
| Loss on disposal of plant and equipment | 10,350 |
| Sales proceed on diposal of plant and equipment | 4,650 |
To do the same topic again in ACCA F3 Sales Proceed On Disposal