Disposal of Non-Current Asset

Adjustments at the Balance Date and Preparation of Sole Proprietorship Financial Statements

MS: Pelupusan Aset Bukan Semasa · EN: Disposal of Non-Current Asset · ZH: 非流动资产处置

Meaning

Disposal of a non-current asset is the process of selling, scrapping or trading in a non-current asset that is no longer used. A Disposal account is opened to transfer the cost of the asset and its accumulated depreciation in order to determine whether there is a gain or loss on disposal. This gain or loss is reported in the Income Statement.

Example

Jaya Printing Firm sells a machine that cost RM8,000 with accumulated depreciation of RM5,000 (book value RM3,000) for RM3,500. There is a gain on disposal of RM500 (RM3,500 - RM3,000).

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4

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