Disposal

Question 1

Steps of sale of an NCA

Answer 1

Step 1: Record opening balances
Step 2: Remove NCA from NCA account, post other side in disposal
Step 3: Get rid of dep to date, other posting to disposal
Step 4: Record proceeds in disposal account. Bank debited so disposal credited
Step 5: Close disposal by recording profit/ loss made

Question 2

Steps of part exchange of an NCA

Answer 2

Step 1: Record opening balances
Step 2: Get rid of NCA in the NCA account, post to disposal
Step 3: Get rid of dep to date, other posting in disposal
Step 4: Record proceeds on disposal, New NCA account debited
Step 5: Close disposal account by recording profit/ loss