Disposal of Non-Current Assets

Non-Current Assets can be disposed by: Discarding, Selling for Cash and ___________ as part payment for a new asset.

Net Book Value of an asset = Cost of Asset - ____________

[Please select TWO options]

• Depreciation

• Amortisation

• Accumulated Depreciation

• Accumulated Amortisation

A motorcycle with a NBV of $5,000 is sold for $7,000. Calculate the gain/loss on the disposal.

• Gain, $2,000

• Loss, $2,000

Which one of the following BEST describes the journal entry to remove the sold motorcycle from Statement of Financial Position?

• Dr: Motorcycle

  Cr: Accumulated Depreciation

• Dr: Accumulated Depreciation

  Cr: Motorcycle

• Dr: Cash

  Cr: Motorcycle

• Dr: Motorcycle

  Cr: Cash

To record a gain on disposal, we will ___________ Gain on Disposable of Non-Current Asset Account.