Short notes on IGCSE Accounting

Disposal account

-Sale of Non-Current Assets.

Step-1: Transfer non-current assets to Disposal account.

Journal entries:

Disposal account—————————Debit

Non-current assets————————-Credit

Step-2: Transfer Accumulated depreciation account to Disposal account.

Journal entries:

Accumulated depreciation —————-Debit

Disposal account————————-Credit

Step-3: Received cash/cheque from sale of Non-current assets.

Journal entries:

Bank————————————Debit

Disposal account————————-Credit

Step-4 (A): Loss on sale of disposal.

Journal entries:

Income statem—————————Debit

Disposal account————————-Credit

Step-4 (B): Profit on sale of disposal.

Journal entries:

Disposal account—————————-Debit

Income statement —————————Credi

Exercises availabe for IGCSE & O’Level