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View Full Version : What journal entry is used to dispose of obsolete depreciated assets?


gjahlen
Aug 28, 2012, 10:09 AM
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
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