Disposal of asset

When do we prepare the disposal account, is it when the asset is sold at the end of the financial year or during the year? Why is it that in some questions we prepare only asset and provision for depreciation account whereas in some questions we prepare the disposal account also?

asked Dec 30, 2015 in Depreciation, Provisions and Reserves. by Feba Rajeev (71 points) 80 views

1 Answer

0 votes
Actually Asset Disposal Account is prepared to record at one place all the elements of  transactions relating to te sale of an asset.  Please note that it is not mandatory to prepare this account.  This is a temporary account and could be prepared whenever asset is sold i.e. either during the financial year or at the end of the financial year.  Unless the question specifically asks for the asset disposal account, there is no need to prepare it.
answered Dec 30, 2015 by jbsclasses (3,853 points)
whats the meaning of seperate discloser?
Please let me know the context in which you are asking this question.