Need help for this question

[Brendan1234]

I’m quite confused with this question whether or not I have to come about calculating the gain on disposal. My entries seems too simple for this question. Thank you. (this question is for APRIL 1)

 

[AchmadFikri97]

I think journal entry for building and land disposal, should be something like this:

DR Cash 100.000
DR Notes Receivable 250.000
DR Acc. Depreciation 250.000
CR Land 50.000
CR Building 550.000


We debit Acc. Depreciation Building and credit Building cost to write off from our book.
There's no gain recognized, because the difference ammount will be paid with Notes Receivables.