Prepare the journal entry to record the asset disposal assuming the machine was sold for tk.30000 cash.

To record the disposal of the machine, you’ll need to account for the cash received, the removal of the asset’s book value (original cost and accumulated depreciation), and any resulting gain or loss on the sale.

Here’s a general journal entry format:

Steps to Prepare:

1. Remove the machine’s original cost: Credit the asset account.
2. Remove the accumulated depreciation: Debit the accumulated depreciation account.
3. Record the cash received: Debit the cash account.
4. Record any gain or loss:
   • If cash received is greater than the book value, record a gain (credit).
   • If cash received is less than the book value, record a loss (debit).

Assume:

• Machine’s cost: Tk. 100,000
• Accumulated depreciation: Tk. 80,000
• Sale price: Tk. 30,000

Journal Entry:

1. Debit Cash (Tk. 30,000): To record cash received.
2. Debit Accumulated Depreciation (Tk. 80,000): To remove accumulated depreciation.
3. Credit Machine (Tk. 100,000): To remove the asset’s original cost.
4. Credit Gain on Sale of Machine (Tk. 10,000): The difference between the sale price and the book value.

Journal Entry: