Fixed assets may be sold anytime during their useful life.
This gives rise to the need to derecognize the asset from balance sheet and recognize any resulting gain or loss in the income statement. The machine was being depreciated on straight line basis.
Select a topic. Machine Cost. Accumalated Depreciation.
Disposal Account. Next: Types of Depreciation Methods.
Accounting Treatment of Depreciation. Introduction to Fixed Assets. Capital and Revenue Expenditure.
Type of Depreciation Methods. Straight Line Depreciation. Declining Balance Depreciation.
Units of Production Depreciation. Sum of the Years Digits Depreciation. Accounting for Disposal.