Profit and loss enquiry?

Question

is a 'Loss of sale on assets' regarded as an expense on the profit and loss account?
basically when you sell an asset and make a loss - is this required to go into the expenses section of the P&L account

Answer 1

Yes, a loss on disposal of fixed assets is an expense item, just as a gain on disposal of fixed assets is an income item. For purposes of the cash flow statement, you it back to the profit before tax and the proceeds from the sale is a cash inflow under investing activities.

Answer 2

I would agree with sandy on this it sounds like an expense as in lost money on an asset, goes on the trading and profit and loss account.

Answer 3

No it is classed as a sale, this is common and business counts it as depreciation....