Account 24800 - Changes in Market Values of Other Assets

Support Query

Selling a depreciated asset at written down value is resulting in an amount in the 24800 account, why is this happening and how can this amount be removed?

Solution

If there is a difference between the disposal amount and the adjusted cost base for the investment, Simple Fund 360 will post the difference to either the 24700 - Changes in Market Values of Investments account or the 24800 - Changes in Market Values of Other Assets account. 

The 24800 account is used when CGT asset is turned off for the investment in the chart of accounts instead of the 24700 account.

The Adjusted cost base of the depreciated asset will need to be changed to be equal with the written down value of the asset. This can be done by entering an Investment Cost Base Adjustment.

Ensure that the depreciable asset disposal journal does not affect the parcel. Remove the unit from the disposal transaction, this will be restored once the Cost base adjustment has been processed.

From the Main Toolbar, go to Accounting.
Select Transaction List.
Select New Transaction.
Select Journal.

Enter the date as the date of disposal.

Post to the depreciable asset account as both the debit and credit. For this example, the adjusted cost base is higher than written down value, so a 0 will be entered into the units of the credit line to reduce the adjusted cost base (if the written down value was higher, the unit would be entered under the debit).

Under more details, select the parcel.

Then click post.

Now that the cost base adjustment has been posted, select the transaction disposing of the depreciable asset.

Enter in the unit back into the depreciable asset line.

Under more details, the adjusted cost base will now equal the written down value of the investment.

Click save.

As there is no difference between the adjusted cost base and the written down value, Simple Fund 360 will not post to 24800 account.