Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

Machinery that had originally cost $6\,290$ was disposed of for $3\,100$. The disposal account indicated a profit on disposal of $584$. What amount of depreciation had been charged up to the disposal date, and on which side of the disposal account was it entered?

  • A$2\,606$ on the credit side
  • B$2\,606$ on the debit side
  • C$3\,774$ on the credit side
  • D$3\,774$ on the debit side

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