Asset Disposal form format

Hi
From audit point of view as well as keep the clear track of all fixes assets, it is necessary to create proper record of the assets. Even if an assets is damaged and thrown, not yield any monetary value, one must keep record that how it is disposed.
Fixed assets, also known as a non-current asset or as property, plant, and equipment , is a term used in accounting for assets and property which cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, which are described as liquid assets. In most cases, only tangible assets are referred to as fixed.It includes furniture and fixtures, electronic equipment including TV, music player, laptop, mobile (in some companies it is shown as expenses too).
You may use following form:


                                                                                                                                                                                                           

                                                ASSETS DISPOSAL FORM

Department    :          

Prepared by   :                                   Signature                                Date:


Disposal Details
The following items which are the property of this department are being requested to be disposed off for the following reason/s.

Disposal                By sale                  ( )                            Write Off             Stolen                                    ( )                                            Trade in                ( )                                                            Scrapped for spares          ( )
                                Donation               ( )                                                            Discarded                             ( )

Asset no.
Description
Qty
Trade or sale value             
Total value
Location
Status/
cond.




























                                VAT (in Rs)          :
                                Total                      :

Date of disposal :                               
Buyer’s detail (Name and address): ………………………………………………………………………

----------------------------------------------------------------------------------------------------------------------------------
Payment terms :
(advance, o. of days of credit etc)
For finance
Asset register no.                                  Original cost (in Rs.)                                            Date of Purchase:

Book value (Rs.)                                  Receipt/ invoice details:

Finance approval                :                               Yes         No           Insurance claim                   Yes                         No
Approval

Head of the department:                                                  Signature:                                            Date:

Operation Director:                                                          Date:

Remarks (if any)…………………………………………………………………………….

Managing Director (If original asset cost exceeds 5 lakhs) :

Note:
  1. Asset Disposal form must be completed for all assets sold, scrapped, stolen or missing. The completed form must be submitted to finance department at HO
  2. The purpose of this form is to provide as much information as possible about the assets being disposed (including sales to staff)
  3. No sales transaction shall be finalized unless the approvals are sought as per the assets disposal form.
  4. Finance will issue an invoice for the sale of assets on the basis of this form.
  5. All quotation/ estimation/ bids received are to be attached with this form. Bids are mandatory for all assets costing more than 5 lakhs.


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