Page 117 - Demo

Ch(5): Plant Assets Disposal114Book Value = Original Cost Accumulated Depreciation= 50,000 %u201339,000 = BD11,000.Gain/ Loss = Proceeds from sales %u2013Book Value=15,000 %u201311,000 = BD4,000.(Gain)The entry is as follo-DateExplanationDebitCreditJuly 012018Cash15,000Accumulated Depreciation -Equipment39,000Equipment50,000Gain on Disposal of Equipment4,000Illustrate (5 -7): Losson DisposalAssume that instead of selling the equipmentfor BD8,000. In this case it has a loss on disposal.Gain/ Loss= Proceeds from sales %u2013Book Value8,000 %u201311,000 = (BD3,000) . (Loss)The entry is as follo-DateExplanationDebitCreditJuly 012018Cash8,000Accumulated Depreciation -Equipment39,000Loss on Disposal of Equipment3,000Equipment50,000