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    bustergr's Avatar
    bustergr Posts: 2, Reputation: 1
    New Member
     
    #1

    Jul 25, 2007, 04:13 PM
    Recording Sale of a Fixed Asset
    I need to record a journal entry to record the sale of one of my business vans and am not sure of what the entry would be. The net book value on my books is 1857 and I sold the van for 1500 therefore incurring a net loss of 357. The entry that I think that I have to record is as follows:

    Dr Cash 1500
    Cr Accum Depr 1857
    Dr Loss on sale of fixed asset on the P&L?? 357

    Also I have recorded 5 months of Depreciation on this years books for this van, is there anything I need to do with this?


    Also I need to record the payment of estimated quarterly taxes and am not sure how to handle this in Quickbooks or what the entry would be?

    Any assistance you may be able to provide would be greatly apppreciated

    Thanks
    Jim
    bhet's Avatar
    bhet Posts: 77, Reputation: 9
    Junior Member
     
    #2

    Jul 28, 2007, 08:57 PM
    Entry to record sale:

    dr. cash 1500
    dr. accum dep 1857
    Cr. Equipment (original cost)

    * cr. Gain on disposal IF the dr. (cash+accum dep) exceeds the cr. (cost of equipment)

    * dr gain on disposal IF cr. Exceeds dr.

    The difference of cr. And dr. will be the gain/loss.

    The gain/loss on disposal can be considred as a balancing figure to balance the entry.
    chelisimo's Avatar
    chelisimo Posts: 11, Reputation: 2
    New Member
     
    #3

    Aug 3, 2007, 08:32 AM
    Assumption
    Original cost $15,000
    Accumulated depreciation $13,143
    Net book value ($15,000 minus $13,143 = $1,857)
    Sale $1,500


    Dr. Cr.
    Cash $1,500
    Accum Dep. $13,143
    Gain/Loss Fixed Asset $357
    Equipment original cost $15,000


    Chelisimo

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