Asset Sale

[Former Member]

Hi All,

We want to sale some Fixed Assets at written down value to another company.

This means, we need to credit Fixed asset at cost and debit accumulated depreciation as at a particular date for the fixed asset sold at WDV. How to do it?

Please advise.

Thanks!

Mohammed Ziauddin

[Former Member · Accepted solution]

Hi,

The following entries will be passed :-

1. Depreciation A/c Dr.

To Accumulated Depreciation

( Depreciation till the date of sale of asset)

2. Customer A/c Dr.

To Fixed Asset A/c

3. Accumulated Depreciation A/c Dr.

To Fixed Asset

4. Loss on sale of Asset A/c Dr.

To Fixed Asset

(If there is loss due to sale)

5. Fixed Asset A/c Dr.

To Profit on sale of asset

( If there is gain due to sale)

Looking forward for the points

Regards,

Saurabh

[Former Member]

Hi,

Create the purchasing company as Customer and retire asset with revenue F-92. Amount received from customer WDV debit to customer account and select asset clearing acccount for second effect. Difference will be posted to asset sale Profit/Loss account by system automatically.

Try once and let me know if you have any problem. Assign points if useful.

Sarma BH