If the total of the credit entries on the non-current asset disposals account is greater than the total of the debit entries, then a profit has been made on the disposal of non-current assets.

Question

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When the credit entries (representing the sale proceeds) on the non-current asset disposals account exceed the debit entries (representing the carrying amount of the asset disposed of), it indicates that the sale price was higher than the book value, resulting in a profit on disposal.

If the Total of the Credit Entries on the Non-Current