Skip to Content

Asset Journal entries

Hii Experts,

Sales of asset

Customer A/C (01) Dr

Asset Sale A/C (50) Cr

Acc. Dep. on Asset (70) Dr

Asset A/C (75) Cr

Asset Sale A/C (40) Dr

Profit on Asset sale (50) Cr or Loss on Asset sale (40) Dr

this is the standard Journal Entry when trying to sell the Asset.

what is Asset Sale A/C (50) Cr and why it is on both side of Dr and Cr?

Best regards,

Lei

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

1 Answer

  • Posted on Sep 03 at 08:03 AM

    Hi - I think this site has a better explanation of the entries with an example: http://sap-f2.blogspot.com/2009/08/asset-transactions-accounting-entries.html

    It states:

    "Asset Disposal – Sales to a Customer: F-92 - With Customer

    Supposed an asset with historical cost $1,000 and accumulated depreciation of $100 is being sold to a customer at a price of $1,100, the posting entries will be as follows:

    Dr. Customer account (A/R) 1,100

    Cr. Revenue for asset disposal 1,100-

    Cr. Fixed asset – acquisition cost 1,000-

    Dr. Accumulated depreciation 100

    Dr. Clearing account for asset disposal 1,100

    Cr. Gain/loss of fixed asset disposal 200-

    The posting date of the retirement posting will also be updated into the field "deactivation date" in the asset master as the retirement date."

    Tammy

    Add a comment
    10|10000 characters needed characters exceeded