Disposal of Fixed Assets

I needed to write off a PC together with a printer that had partially depreciated.

I have done the journal entry in the attached image.

I would appreciate your comments on this because I am not sure whether I missed an entry or two.

Thanks

Iain

You need to know both the original cost and total depreciation to date, see the example below:

1. Total Original Cost of Assets = £1000.00
2. Total Depreciation to Date = £775.05
3. Funds Received on Disposal of PC & Printer = £192.14

4. Loss/(Profit) on Sale Asset is the Balancing Figure i.e (1)£1000 - (2)775.05 - (3)192.14 = £32.81
*

*Sale proceeds paid into Current Account in the above example.

Using the above example the journal would be entered as follows:

The asset has now been fully written off and any loss on disposal claimed, in the above example the funds were paid into the Current Account, therefore if you received the sale proceeds by any other method i.e. cash or directly into your personal account, change the 3rd line of the journal entry from “1200 Current Account” to “1230 Petty Cash” or “1201 Directors Loan Account” accordingly.

Thanks Joe

Have I understood correctly? Would the debit to 1200 would be zero if the asset was scrapped meaning there were no proceeds?

Regards

Iain

That’s correct, so the journal would be:

Hi Joe, How do I find out the Depreciation to Date? Is it a figure that I find in QuickFile, or do I estimate, or is the a way of calculating depreciation on a pro rata basis?
Thanks,
Tom

Hi i have a director who has brought the company car off the company how would i do the journal for this also he is paying for it through his directors loan account.