Ask Experts Questions for FREE Help !
Ask
    Ron Ballard's Avatar
    Ron Ballard Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 29, 2008, 05:54 AM
    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.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Journal entry for purchase and sale of property for sale [ 5 Answers ]

I purchase an apartment for $ 1.7m and paid first instalmment of 250k ,Before the second installment I sell the apartment at the value of 1.9m .Please tell me how to record the journal entry .

Journal entry for sale of long term investment [ 3 Answers ]

Cash 42000 Long-term investments 42000 If the investment was originally purchases for 30000, does that matter? Should there be a separate je to account for that?

Sale of truck-journal entry [ 1 Answers ]

Company sold a used truck for 24,000. Original cost 62,000 and total depreciation of 18,000. Prepare journel entry to record sale of truck I got Dr Acc. Depreciation 18,000 DR cash 24,000 DR lost of sale 20,000 Cr truck 62,000

Fixed Asset Journal Entry [ 1 Answers ]

If a company owns equipment and it is on the books as a fixed asset, then 'leases' it to a financial company for three years -- how do you record the entries? The financial company pays me $50,000 cash for the equipment. I lease / to own it back over the next three years. What would the JE be...

Entering a capital asset journal entry [ 1 Answers ]

We received $50,000 in capital assets in lieu of paying old invoices totaling $16,000 by a customer. If I CR sales and DR Bad Debts for the $16,000 to clear the old invoices on the books and then DR Assets for the $50,000 what would be the offsetting CR entry?

View more questions Search