The following information was disclosed in the financial statements of Lowland for the year ended X9.
| X8 | X9 | |
| $ | $ | |
| Plant & Equipment cost | 864,150 | 1,074,650 |
| Accumulated depreciation | 432,075 | 381,575 |
During the year, the following occurred in respect of Plant & Equipment:
| Purchase of plant and equipment | 310,500 |
| Depreciation charged on plant and equipment | 34,500 |
| Loss on disposal of plant and equipment | 10,350 |
What were the sales proceeds received on disposal of the plant and equipment?
Suggested solutions
| Opening Balance | 864,150 | Disposal | ??? |
| Purchase of new plant | 310,500 | ||
| Closing Balance | 1,074,650 | ||
| Cost of plant and equipment disposed of | 100,000 |
| Disposal | ??? | Opening Balance | 432,075 |
| Depreciation charged | 34,500 | ||
| Closing Balance | 381,575 | ||
| 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 | 10,350 |
| Sales proceed on diposal of plant and equipment | 4,650 |
To do the same topic again in ACCA F3 Sales Proceed On Disposal