A Accounting

Remaining Carrying amount (video below)

The carrying amount of a company’s non-current assets was $100,000 at 1 August 20X2. During the year ended 31 July 20X3, the company sold non current assets for $12,500 on which it made a loss of $2,500. The depreciation charge of the year was $10,000.

What was the carrying amount of noncurrent assets at 31 July 20X3?

Answer

Gain(loss) = proceeds – carrying amount

Carrying amount = proceeds – gain(loss)

$
Carrying amount at 1st August 20X2 50,000
Less depreciation (5,000)
45,000
Proceeds 6,250
Loss 1,250
Carrying amount of asset sold (7,500)
Therefore carrying amount 37,500


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