When part exchanging a non-current asset, which account is debited at cost?

In a part exchange transaction involving a non-current asset, you record the asset that is acquired at its cost. This reflects the value at which the asset was originally purchased or produced, ensuring accurate representation in the financial statements. By debiting the "At cost account" for the amount attributed to the new asset, the accounting records clearly show the historical cost of the asset, which is a fundamental aspect of the cost principle in accounting.

This approach ensures that the financial statements reflect the proper valuation of assets, aligning with the principle that non-current assets should be recorded at their cost rather than their market value. The cost is crucial for future depreciation calculations and for evaluating the overall financial position of the entity.

Other options do not appropriately address this need. The disposal account is primarily used to record losses or gains from the sale of an asset, while the bank account would reflect cash transactions rather than asset exchanges. The non-current asset account (NCA account) is where the asset initially resides but does not typically reflect the at-cost value of the new asset brought in through the exchange process.