Alpha sells machine B for $50,000
cash on 30 April 20X4.
Machine B cost $100,000
when it was purchased and has a carrying amount of $65,000 at the date of disposal. What are the journal entries to record
the disposal of machine B?
AAccumulated depreciation $35,000 Dr Loss on disposal (SPL) $15,000
Dr Cash $50,000 Cr Non-current assets - cost $100,000
BDr Accumulated depreciation $65,000
Dr Loss on disposal (SPL) $35,000
Cr Non-current assets - cost $100,000
CAccumulated depreciation $35,000 Dr Cash $50,000
Cr Non-current assets $65,000 Cr Profit on disposal (SPL) $20,000
DDr Non-current assets $65,000 Dr Accumulated depreciation $35,000
Cr Cash $50,000 Cr Profit on disposal (SPL) $50,000