I am really struggling with filling our company accounts due to the balancing charge on van disposal. Can anyone please confirm the following entries are correct?
We bought a van in 2019 for £1,170 and claimed AIA in full. In 2020 we sold the van for £500. In the accounts we have a loss on disposal of £432 (£1,170 less depreciation of £238 less £500). When filling the company accounts this amount is included in other charges (box AC425), then in profits/loss on disposal on assets (box CP33) and then added back to the company's loss in the adjustment section (box CP51).
Am I correct saying that the proceed of £500 needs to be added to the loss in the balancing charges in CP672 'total proceeds from disposal from main pool' since full AIA was claimed?