Disposal Of Non-current Assests

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 assets register

Answer 3

A register that lists all the tangible non-current assets owned by the business, and inc detailed info on the cost, acquisition date, depn, carrying amount and ultimately, the disposal details of each item.

Question 4

Part exchange

Answer 4

A method of disposal whereby the old asset is given in part exchange for a 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.