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Sep 2, 2019 10:03 PM UTC
Question

How do I record the cash sale of an asset??It has been depreciated and now sold.

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2 replies

Sep 2, 2019 10:16 PM UTC

Hi there, 

 

Great to have you post in our Community. It's vital you record the cash sale of an asset the right way in order to avoid any discrepancies in the future. To make sure the transactions are handled accurately, I recommend reaching out to an accounting professional. If you're not in contact with one, I recommend searching for one on our website using this link here. Let me know if you have other questions. I'm here to assist. 

Aug 6, 2024 3:37 AM UTC

If you sell a depreciated asset:

Debit the bank account for the amount you are being paid for it.

Debit the accumulated depreciation account for the amount it has depreciated (this clears out this account)

Credit the asset account for the amount it was previously depreciated (this closes the asset account)

Credit an income account called "Gain on Sale of Asset" (create that account if it is not already created)