Chapter Five- Disposal of Non-Current Assets

Question 1

Disposals Account

Answer 1

The ledger account used to record all aspects of the disposal of the non-current asset

Question 2

Gain or Loss on Disposal

Answer 2

The difference between the carrying amount of the asset at the date of disposal and the disposal proceeds

Question 3

Non-Current Asset Register

Answer 3

A register that lists all of the tangible non-current assets owned by the business, and includes detailed information on the cost, acquisition date, depreciation charge, carrying amount and disposal details of each asset

Question 4

Part-Exchange

Answer 4

A method of disposal whereby the old asset is given in part-exchange for the new asset to reduce the price of the new asset

Question 5

Part-Exchange Allowance

Answer 5

The value assigned to the old asset being part-exchanged by the supplier of the new asset