One section of the balance sheet is sole consists of business assets such as plant & machinery, equipment. The assets should be tangible and longer than a year and cannot be resale.

When you dispose of the asset then make sure the accounts are updated properly to check the depreciating balance. You must also record the profit or loss incurred while disposing of the assets.

Record acquisition Cost: It is the cost that occurs while the purchase of an asset. All the expenses that incurred while placing the property into use are the acquisition cost.