The following information was disclosed in the financial statements of Lowland for the year ended X9.
| X8 | X9 | |
| $ | $ | |
| Plant & Equipment cost | 370,350 | 511,850 |
| Accumulated depreciation | 185,175 | 169,175 |
During the year, the following occurred in respect of Plant & Equipment:
| Purchase of plant and equipment | 241,500 |
| Depreciation charged on plant and equipment | 69,000 |
| Loss on disposal of plant and equipment | 6,900 |
What were the sales proceeds received on disposal of the plant and equipment?
Suggested solutions
| Opening Balance | 370,350 | Disposal | ??? |
| Purchase of new plant | 241,500 | ||
| Closing Balance | 511,850 | ||
| Cost of plant and equipment disposed of | 100,000 |
| Disposal | ??? | Opening Balance | 185,175 |
| Depreciation charged | 69,000 | ||
| Closing Balance | 169,175 | ||
| 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 | 6,900 |
| Sales proceed on diposal of plant and equipment | 8,100 |
To do the same topic again in ACCA F3 Sales Proceed On Disposal