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Ron Ballard
Jul 29, 2008, 05:54 AM
Need to know the journal entry for the sale of a depreciable asset with book value and remaining and some depreciation taken to date.

pready
Mar 1, 2012, 12:47 PM
First thing you need to do is get the depreciation up to date.

To record the sale of the asset the journal entry will be:
Debit cash for the amount of cash received
Debit Accounts Receivable if asset was sold on account
Debit Notes Receivable if customer signed a note for the asset
Debit Accumulated Depreciation for the amount of depreciation accumulated on the asset
Credit the Asset for the cost of the asset

If there is a difference between your debits and credits you will have one more account. If your difference is a debit you will have a Debit Loss on Sale of the asset for the amount of the difference. If your difference is a credit you will have a Credit Gain on Sale of Asset for the amount of the difference.