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    gjahlen's Avatar
    gjahlen Posts: 1, Reputation: 1
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    #1

    Aug 28, 2012, 10:09 AM
    What journal entry is used to dispose of obsolete depreciated assets?
    In reconciling the balance sheet at year end, obsolete assets need to be removed. Is the correct entry to debit the accumulated depreciation and credit the obsolete asset ? Then what is the account to be used for the balancing entry? Would that be gain or loss on disposition of assets, an equity account or to retained earnings?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Aug 28, 2012, 03:54 PM
    If there is a loss on disposal this is posted to a loss on disposal account and this in included in the P&L
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