Disposal of Fixed Assets With Zero Net Book Value Journal Entry
Disposal Of Fixed Assets or Plant Assets With Zero Net Book Value Or Fully Depreciated / Journal Entry For Sale of Asset Fully Depreciated The disposal of Fixed Assets / Non-Currents with zero net book value takes place when a fixed asset / Non Current Assets is fully depreciated. In that it is completely removed from accounting records. In other words, it is discarded or derecognized from the Balance Sheet . Example, XYZ Company purchased Office Equipment of Rs. 30000 on 1 st January, 2005. The company adopted the Straight-Line Method. Rate of Depreciation is 10%. The estimated useful life of office equipment is 10 years. On 31 st December, 2014, the office equipment is fully depreciated. Record the journal entry for disposal of fully depreciated office equipment. Here: Cost of Office Equipment = Rs. 30000, Rate of Depreciation = 10%, Depreciation Method: Straight Line Depreciation Per Year = 30000 X 10% = 3000 Accumulated Depreciation - Office Equipment ...