Accounting for IGCSE & O level - Accounting Procedures (Section 4 - No. 35)
What is the first step when accounting for the disposal of an asset?
Calculate the profit or loss on disposal.
Remove the asset from the balance sheet.
Determine the asset's net book value.
Record the cash received from the sale.
Explanation
Determining the net book value is crucial to determine the profit or loss.
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