What is the purpose of Clearing and Revenue account in Asset Disposal : F-92?

Hi All,

Please clarify my doubt ;

In Asset Disposal - Sale to Customer : F-92 with customer

Suppose an asset with historical cost $1000 and accumulated depreciation of $100 is being sold to a customer at $1100, the posting entries will be as follows :

Dr Customer Account (A/R) 1,100

Dr Accumulated Depreciation 100

Cr Fixed Asset - Acquisition Cost 1,000-

Cr Gain/Loss of Fixed Asset Disposal 200-

Dr Clearing Account for Asset Disposal 1,100

Cr Revenue for Asset Disposal 1,100-

I completely understand the first four line items, but don't know the purpose or the 5th and 6th line items.

Please explain why we need a clearing and revenue account for asset disposal and what would be the impact of these accounts in asset accounting?

Thanks in advance !!!

Regards,

Vicki