Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
stock valuation
04-13-2005, 09:26 PM
Post: #1
stock valuation
as regards to the question on stock valuatioans. to this n pls send email chigbogwuoscar@yahoo.com qus. as regard to disposal of Asset can one tell me the accounting procedure in recordind it and how it should be treted in profit and loss a/c and balance sheet when sold at a profit and at a loss
Visit this user's website Find all posts by this user
Quote this message in a reply
04-14-2005, 12:11 AM
Post: #2
 
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by OSCAR ISRAEL</i>
<br />as regards to the question on stock valuatioans. to this n pls send email chigbogwuoscar@yahoo.com qus. as regard to disposal of Asset can one tell me the accounting procedure in recordind it and how it should be treted in profit and loss a/c and balance sheet when sold at a profit and at a loss
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Disposals of Fixed Assets

Think of it as two elements -

1) the disposal; and
2)the profit/loss on sale.

1) To dispose of an asset you need to remove it from fixed assets - therefore cost and accumlated depreciation both need removing - with the net book value going to the "Sale of Fixed Assets" in the P&L a/c. This latter entry will be a debit (or zero if completely written down).

2) Once the asset has been removed you are half way there - all you need to then do is match up the proceeds. These will either come from the bank or cash account or perhaps a sales invoice. Basically, wherever they come from you want to ensure that the credit entry of the transaction goes to the "Sale of Fixed Assets" in the P&L a/c. The resultant debit or credit on this account is then your loss or profit on disposal.


---------------------------------------------
If I could... Then I would... Turn back time!!
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)