The carrying value of a company's non-current assets was $1,200,000 at 1 August 2013. During the year ended 31 July 2014, the company sold non-currnet assets for $20,000 on which it made a loss of $4,000. The depreciation charge for the year was $120,000 . What was the carrying value of non-current assets at 31 July 2014?
SUGGESTED SOLUTIONS:
NON-CURRENT ASSETS
| OPENING BALANCE | 1,200,000 | DISPOSAL | 24,000 |
| ANNUAL DEPRECIATION | 120,000 | ||
| CLOSING BALANCE | 1,056,000 |
WORKING : Carrying value of the disposal
=Sales + loss in disposal
=20,000 + 4,000
=24,000