Disposal of Plant Assets Introduction and Overview

In this unit, we will discuss the various ways in which plant assets, such as equipment, delivery trucks, or machineries, can be disposed of when they are no longer useful to a business.

Plant assets cannot be used forever and may need to be replaced with newer models or disposed of due to wear and tear.

There are three main options for disposing of plant assets:

  • discarding them as worthless,
  • selling them, or
  • trading them in for similar or dissimilar assets.

We will also cover the process of recording disposals in the company's ledger accounts, including how to handle any gains or losses that may result. It is important to maintain proper records of plant asset disposals in order to maintain control over these assets and accurately reflect their value in the company's financial statements.


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