Disposal with Trade-In
Item number 27830 has this current account information:
Asset cost: 60,000.
Accumulated depreciation: -45, 000.
Net book value: 15,000.
A new Asset Master Record, number 27836, needs to be created.
Disposal entries are created as follows:
Account Number |
Account Description |
Debit |
Credit |
|---|---|---|---|
50.2030 |
Cost |
N/A |
60,000 (Item number 27830) |
50.2130 |
Accumulated Depreciation |
45,000 (Item number 27830) |
N/A |
50.2030 |
Cost |
15,000 (Item number 27836) |
N/A |
Note: The debit amount to the Cost Account
of the new asset is the NBV (Net Book Value) of the Original Asset.