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Non-current assets: Disposal, revaluation and impairment

3.2 Accounting for disposal of a non-current asset

Step 1 Step 2 Step 3
 Debit –
 Debit – Disposal  Debit – Cash
account Accumulated
account
 Credit – depreciation  Credit – Disposal
account
Non-current  Credit – Disposal account
asset account
account

The balance on the disposal account represents the profit or loss on
disposal and should be transferred to the statement of profit or loss.

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