Please note: the asset in this question is not to be included in the Asset register of B2B Enterprises.

Disposal details -At 30^th June 2021, a Motor vehicle has a capitalised cost of $40,000 (excluding GST) and Accumulated Depreciation of $8,000. The Motor vehicle is depreciated at 20% using the straight-line method.

On 31^st March 2022 the motor vehicle is sold for cash $29,700 (including GST) and the entry was recorded in the accounting records below.

The accountant has asked you to check the data for accuracy.

1. Reconcile the Depreciation schedule and General Journal accounting records below to identify and trace any errors.

Q5 - Disposal of an Asset

Date	$ Carrying amount at start	$ Depreciation	$ Accumulated Depreciation	$ Carrying amount at end	Comments
30-Jun-20	40,000.00			40,000.00	Cost price
30-Jun-21		8,000.00	8,000.00	32,000.00	Depreciation
31-Mar-22		6,000.00	14,000.00	26,000.00	Depreciation
31-Mar-22				27,000.00	Disposal (excl GST)
31-Mar-22				1,000.00	Profit on Disposal

Q5 - Disposal of an Asset

B2B Enterprises-General Journal
Date	Particulars	$ Debit	$ Credit
31-Mar-22	Accumulated Depreciation-Motor Vehicle	6,000
	Depreciation		6,000
	Depreciation for 9 months to 31st March 2022
	Motor Vehicle	40,000
	Disposal		40,000
	Transfer cost of Motor Vehicle to Disposal
	Accumulated Depreciation-Motor Vehicle	14,000
	Depreciation		14,000
	Transfer accumulated depreciation of Motor vehicle
	Cash at Bank	29,700
	Disposal		27,000
	GST Collected		2,700
	Proceeds of cash sale of Motor vehicle
	Disposal	?
	Profit on Disposal		?
	Close disposal profit and transfer to revenue account