Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 40)
Which of the following is NOT a step in accounting for the disposal of a non-current asset?
Depreciating the asset up to the date of disposal.
Removing the asset from the statement of financial position.
Recognizing any gain or loss on disposal.
Increasing the accumulated depreciation by the asset's initial cost.
Explanation
The initial cost is the amount at the time of purchasing the asset, it is not depreciated.
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