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    sigmatwo's Avatar
    sigmatwo Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 20, 2009, 08:56 AM
    Sale of Fixed Assets
    How do I record the sale of a fixed asset at a loss in my accounts?
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    May 20, 2009, 11:41 PM

    When there is a loss on sale of fixed assets. It means that you have received cash or proceeds that are less than the book value of the assets.
    For example assume that you have a car with a cost of 10,000 and accumulated depreciation of 6,000 and you sale this car for 3,000. Accordingly, you should record a loss from sale of fixed assets by an amount of 1,000. The entry will be as follows:
    Dr. Cash 3,000
    Dr. Accumulated depreciation 6,000
    Dr. Loss from sale of fixed assts 1,000
    Cr. Car (cost) 10,000
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