The following information was disclosed in the financial statements of Lowland for the year ended X9.
| X8 | X9 | |
| $ | $ | |
| Plant & Equipment cost | 370,350 | 480,850 |
| Accumulated depreciation | 185,175 | 187,675 |
During the year, the following occurred in respect of Plant & Equipment:
| Purchase of plant and equipment | 310,500 |
| Depreciation charged on plant and equipment | 172,500 |
| Loss on disposal of plant and equipment | 17,250 |
What were the sales proceeds received on disposal of the plant and equipment?
Suggested solutions
| Opening Balance | 370,350 | Disposal | ??? |
| Purchase of new plant | 310,500 | ||
| Closing Balance | 480,850 | ||
| Cost of plant and equipment disposed of | 200,000 |
| Disposal | ??? | Opening Balance | 185,175 |
| Depreciation charged | 172,500 | ||
| Closing Balance | 187,675 | ||
| Accumulated depreciation of plant and equipment disposed of | 170,000 |
| Cost of disposal | 200,000 |
| Depreciation charged on disposal | 170,000 |
| Carrying Value on disposal of plant and equipment | 30,000 |
| Loss on disposal of plant and equipment | 17,250 |
| Sales proceed on diposal of plant and equipment | 12,750 |
To do the same topic again in ACCA F3 Sales Proceed On Disposal