Help with a dumb question

[kepal5]

Hello everyone I'm just blanked out on this question but I know it should be deadset easy. Can someone please tell me the entries for this transaction
Office Equipment purchased 1000 written down to 600 and was sold on april 30th 950 cash.
Thanks alot guys

[Sach1_K]

Hello everyone I'm just blanked out on this question but I know it should be deadset easy. Can someone please tell me the entries for this transaction
Office Equipment purchased 1000 written down to 600 and was sold on april 30th 950 cash.
Thanks alot guys

Alrite so I think the question is the sale of a non current asset.
So disposal of office equipment debit 1000
     Office equipment credit 1000
     Accumulated depreciation debit 400
     Disposal of office equipment credit 400
And in the cash receipts write disposal of equipment with 950 in bank and 950 in sundries.
Then u have a profit of 350
So
Disposal of equipment debit 350
Profit of disposal of equipment credit 350
Hope this is right and it helps.

[abcdqdxD]

yup this looks right

What I'll add:

Disposal of NCA questions can be examined in a few different ways:

- Contruct ledger account for Disposal of NCA Account
- Contruct ledger account for Disposal of NCA, Asset Account, Acc Depn, Bank
- Record it in the General Journal

They may also combine it with a trade-in.

In the exam these questions are normally worth 6-8 marks, and can be done in 2-3 minutes so it's a massive time-saver. Get good at them!

[kepal5]

Ahh i forgot to add one thing to my first post. If I was given a balance of Office Equipment as 3335 and Accumulated dep'n of 1334 do I add $400 to the accumulated dep'n then reduce my office equipment to 2735 (the 600 value) or should I reduce it by $1000