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how the answer is coming A can anyone explain

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how the answer is coming A can anyone explain

An organisation's asset register shows a carrying amount of $145,600. The non-current asset account in the nominal ledger shows a carrying amount of $135,600. The difference could be due to a disposed asset not having been deducted from the asset register. Which one of the following could represent that asset?
A Asset with disposal proceeds of $15,000 and a profit on disposal of $5,000
B Asset with disposal proceeds of $15,000 and a carrying amount of $5,000
C Asset with disposal proceeds of $15,000 and a loss on disposal of $5,000
D Asset with disposal proceeds of $5,000 and a carrying amount of $5,000strong text

June 6th 2017 AN ACCA USER 290 Points

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Answer is "A".

The Process is as follows.

Asset Register - $ 145,600.00
Asset Account - $ 135,600.00

Difference - $ 10,000.00

Reason for Difference - Disposed Asset not being deducted from the Asset Register ( As said in the Question ).

Double Entry is as Follows.

Disposal Account ( Profit on Dispoasl ) DR - 5,000.00
Disposal Account ( Disposal Proceeds ) CR - 15,000.00

Therefore the Balance in the Disposal Account is Debit $ 10,000.00

Disposal Account Debit Entry ( $ 10,000.00 ) Double Entry is as follows

Disposal Account DR $ 10,000.00
Asset A/C CR $ 10,000.00

For any Further Reference Please Refer.

Thanks and Regards.
Rajith Mendis

December 4th 2017 AN ACCA USER 310 Points
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