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    kanagha's Avatar
    kanagha Posts: 1, Reputation: 1
    New Member
     
    #1

    Aug 25, 2010, 09:10 PM
    Prepare journal entries and the sale of the equipment
    Sold office equipment for RM12,000. The equipment was purchased on March 31, 2008, for RM24,000. The asset was being depreciated over a five-year life using the straight-line method.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #2

    Aug 25, 2010, 11:23 PM

    Have you read the guidelines?

    https://www.askmehelpdesk.com/finance...-b-u-font.html

    The question lacks important information:
    1. Date of purchase of equipment
    2. Accounting year end

    The usual procedure is to transfer the original cost and accumulated depreciation to Disposal account. The sales proceeds are recorded in this account, the resulting balance is profit or loss on disposal.

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