Selling a fixed asset is not a routine transaction (unless you do it very frequently)
Basically the entries(to be posted using the Miscellaneous Journal) are:
- Credit the fixed asset account for the gross book value
- Debit the amortization account for the total of accumulated depreciation
- Debit an expense account (you may need to create it) called "net book value of fixed assets sold" for the balance of the 2 previous entries.
The you need to book the sale itself:
- Credit Sales (of fixed assets)
- Debit: Client or bank
The accounting profit or loss on sale of the asset is the difference between the amount credited to the sales account and the net book value (recorded on the P/L statement)
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|Asked: 6/13/14, 8:50 AM|
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|Last updated: 3/16/15, 8:10 AM|