The carrying value of a company's non-current assets was $1,600,000 at 1 August 2013. During the year ended 31 July 2014, the company sold non-currnet assets for $70,000 on which it made a profit of $5,000. The depreciation charge for the year was $160,000 . What was the carrying value of non-current assets at 31 July 2014?
SUGGESTED SOLUTIONS:
NON-CURRENT ASSETS
| OPENING BALANCE | 1,600,000 | DISPOSAL | 65,000 |
| ANNUAL DEPRECIATION | 160,000 | ||
| CLOSING BALANCE | 1,375,000 |
WORKING : Carrying value of the disposal
=Sales - Profit on disposal
=70,000 - 5,000
=65,000