Views:

It is advisable to split the line on the fixed asset register into those assets that have been disposed of and those that have not.

Example

The academy capitalised 10 laptops on 01 January 2012 at a cost of £3,900. On 03 March 2013, 5 laptops were sold for a total of £1,000.

Prior to disposal, the assets are recorded on the fixed asset register as follows:

Asset number: 5 Description: 10 Laptops Invoice number: LP456 Date asset capitalised: 01/01/2018

Cost: £3,900

After disposal the assets would be recorded as follows:

Asset number: 5A Description: 5 Laptops Invoice number LP456 Date asset capitalised: 01/01/2018

Cost: £1,950

Asset number: 5B Description: 5 Laptops Invoice number LP456 Date asset capitalised: 01/01/2018

Cost: £1,950

Date of disposal: 03/03/2013

Disposal proceeds: £1,000

The additional row should be recorded on the next available row within the fixed asset register. Additional rows should not be inserted as this will impact the formulae.