What Is Assets' Disposal?

The term assets disposal means the sale of assets. For example, machinery is an asset for an organization and when the machinery is depreciated or gets obsolete, it can be disposed of by the company. This sale of machinery is known as asset disposal of machinery or asset. As a result of asset disposal, the assets are not affected because one asset entry is change into other like amount from the machinery account will be transferred to the cash account or accounts receivables.