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What are the impacts to the accounting statements, and the real cash flow?

2007-08-22 01:02:30 · 3 answers · asked by Anonymous in Business & Finance Other - Business & Finance

To expand upon "get rid of", lets say it is still a useful asset, but no longer needed, aka: not broken

2007-08-22 03:20:09 · update #1

3 answers

If you have to get rid of an asset before it's fully depreciated, say a broken table, you write off the net book value and close off all fixed asset accounts related to the table. Let's assume your table cost $200 with an expected useful life of 4 yrs and no salvage value. You've depreciated it for 3 yrs, and your accumulated depn a/c bal. is $150 and your nbv is $50. Now you want to throw it away. Your entries are:
Dr Fixed assets written off 50 (expense item)
Dr Accd depn 150 (balance sheet item)
Cr Fixed assets 200 (balance sheet item)

2007-08-22 03:03:01 · answer #1 · answered by Sandy 7 · 0 0

what is the reason that the company got rid of the asset ?

what is the value of the asset ?

if an asset is broken , it still gets written off.

2007-08-22 01:41:53 · answer #2 · answered by Mildred S 6 · 0 0

We don't have a "gets rid of" transaction in accounting, per se. Perhaps you could explain?
Why did this happen?

Was it sold?
Was it thrown away in the trash?
Was it donated to charity?

What was it?
What was it's value?
How was it valued?

2007-08-22 02:08:38 · answer #3 · answered by copious 4 · 0 0

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