XYZ ltd. purchase a delivery van for 54,000(GST excluded 12%) van's expected usefull life is 5 years will dispose it at the end of the fifth year $6,000 plus GST (12%)

prepare the journal entry to record disposal of the delivery van at the end of the third year.

The delivary van was trade in on a new van costing $63,000 GST inclusive, a trade in allowance of $34,000 (plus GST 12%) was given and the balance was paid in cash.