Accounting for IGCSE & O level - Accounting Procedures (Section 7 - No. 3)
What is the first step in accounting for the disposal of a non-current asset?
Calculate the profit or loss on disposal.
Determine the net book value of the asset.
Record the proceeds from the sale.
Prepare the journal entries for the disposal.
Explanation
The first step is to determine the net book value of the asset. This is necessary to calculate the profit or loss on disposal.
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