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-   -   Journal entry sale of depreciable asset (https://www.askmehelpdesk.com/showthread.php?t=242888)

  • Jul 29, 2008, 05:54 AM
    Ron Ballard
    Journal entry sale of depreciable asset
    Need to know the journal entry for the sale of a depreciable asset with book value and remaining and some depreciation taken to date.
  • Mar 1, 2012, 12:47 PM
    pready
    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.

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