Disposals
You'll learn how to account for the disposal of property, plant and equipment, including calculating gains and losses and recording the necessary journal entries.
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In this lesson
- 0:00 Part three disposals introduction
- 0:25 Recording disposal journal entries step by step
- 2:57 Calculating profit or loss on disposal
- 3:50 Worked example cash disposal
- 6:10 Part exchange agreements explained
- 7:48 Worked example part exchange disposal
About this lesson
This video covers the complete process for removing assets from your financial statements, whether you're selling for cash or using a part exchange arrangement. You'll work through practical examples showing how to calculate carrying amounts, identify profits or losses on disposal, and post the correct ledger entries. This is essential knowledge for Financial Accounting, Financial Reporting, and Strategic Business Reporting papers, where disposal questions regularly appear in both objective tests and case studies.
Duration: 10m
Transcript
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