STEP 1: Eliminate the asset from the accounting system.

On the 15 March 2011 Ballymore disposed of a bus (which originally cost ?100,000 when purchased 1/7/2005) receiving proceeds of ?37,000. Ballymore have a policy of depreciating vehicles 10% per annum straight line on assets held at the end of year.

Tick which two ledger accounts should be used.

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