Asset Journal entries

[former_member697408]

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

[TammyPowlas]

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

[former_member697408]

Hello Tammy

Thank you very much !