The carrying value of a company's non-current assets was $400,000 at 1 August 2013. During the year ended 31 July 2014, the company sold non-currnet assets for $80,000 on which it made a profit of $5,000. The depreciation charge for the year was $40,000 . What was the carrying value of non-current assets at 31 July 2014?
SUGGESTED SOLUTIONS:
NON-CURRENT ASSETS
| OPENING BALANCE | 400,000 | DISPOSAL | 75,000 |
| ANNUAL DEPRECIATION | 40,000 | ||
| CLOSING BALANCE | 285,000 |
WORKING : Carrying value of the disposal
=Sales - Profit on disposal
=80,000 - 5,000
=75,000