Accounting Entries for Retirement
Retiring an asset is next on my tick list. Afraid to say I am a little baffled by the entries the retirement has made. The asset itself came into service im March 2010 and I retired it in Oct 2012. The cost was £ £ 5,893.44. There are no costs of sale and no proceeds. The accumulated depreciation up to the point of retirement was £ 1,522.43. Straight line depreciation over 10 years.
The Retirement created the following entries:
Dr 1,522.43 Retirement Depreciation Reserve
Dr 4,371.01 Retirement NBV Retired
Cr 5,893.44 Retirement Cost