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    L hud's Avatar
    L hud Posts: 1, Reputation: 1
    New Member

    Nov 17, 2008, 11:36 AM
    Record the sale of a fixed asset
    How to record the sale of a fixed asset at year end?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Dec 12, 2008, 06:48 PM

    First you need to get your depreciation up-to-date on the asset. Calculate your depreciation for the period.

    Debit Depreciation Expense for the amount
    Credit Accumulated Depreciation

    Debit Cash for the amount received
    Debit Accumulated Depreciation for the amount in the account
    Credit Equipment for the cost of the equipment

    Debit or Credit the difference (if any) as a gain or loss

    Yo have to remove the asset and the associated Accumulated Depreciation accounts

    The differences between these accounts and the cash received is a gain or loss.
    Elbilli's Avatar
    Elbilli Posts: 4, Reputation: 1
    New Member

    Sep 26, 2009, 09:46 AM
    Yes but How do I record the gain or loss. As other income or other expenses?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Sep 26, 2009, 01:19 PM

    A gain or loss will be recorded in the Income Statement as Other Gains and revenues or the other losses and expenses section of the Income Statement.

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