Question

How do I post this to a joural

June 30: Discard of outdated, obsolete equipment Veideretti discontinued use of one its delivery vehicles and discarded it, receiving no salvage value. Details of Discard Original Cost $4,000 Accumulated Depreciation $3,800 Net Book Value $200 Note that Veideretti is discarding an asset with a net book value of $200; thus there is a loss on this disposal (discard) of $200. Record the discard by debiting the Accumulated Depreciation – Delivery Vehicles account, debiting the Loss on Asset Disposal account, and crediting the Delivery Vehicles account. Record the discard.

Answer 1

Ans.	General Journal	Debit	Credit
	Accumulated Depreciation – Delivery Vehicles	$3,800
	Loss on Asset Disposal	$200
	Delivery vehicle		$4,000
	(to record the discarding of delivery truck)
	*Explanations:
	*Discarding of assets means nothing is receipt at the time of sale,
	so the cash account is not debited to record the discarding.
	*Assets account is credited on its cost.
	*Accumulated depreciation amount is given 3,800.
	*Loss on assets disposal is calculated by the following way :
	Loss on disposal of asset =    Sales value - Book value at the time of sale
	$0 - $200
	-$200
	Sales value > Book value = Gain on disposal of assets
	Sales value < Book value = Loss on disposal of assets
	Sales value = Book value = No profit no loss