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June 19, 2023
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How to submit journal entry for sale of fixed asset that appreciated in value?

  • June 19, 2023
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I have recently sold a fixed asset that appreciated in value.  On all my other sales of fixed assets, I was selling at a loss.  Example, on sales where I received a loss, I entered a credit $100.00 in the Fixed Asset account, then I entered a credit to category Cash Account of the sales price $80.00, and then a credit to category Loss on Disposal of Goods.  In this case the cash received in the sale + the credit to loss account = the original fixed asset price.  

Now that I've sold a fixed asset that has appreciated in value, how do I structure the journal entry, as the credits and debits need to equal out on the journal entry?

Best answer by Rainflurry

@MAObyron 

 

When you sell a fixed asset with a gain, it looks like this:

 

 DebitCredit
Cash (sale price)XXX 
Accumulated Depreciation (to close)XXX 
    Fixed Asset (to close - original cost) XXX
   Gain on sale (Other income) XXX

1 reply

Rainflurry
June 20, 2023

@MAObyron 

 

When you sell a fixed asset with a gain, it looks like this:

 

 DebitCredit
Cash (sale price)XXX 
Accumulated Depreciation (to close)XXX 
    Fixed Asset (to close - original cost) XXX
   Gain on sale (Other income) XXX
MAObyronAuthor
June 22, 2023

Thanks.

I think more than anything, I needed verification that I was doing it right.  Thanks @Rainflurry for your help!!!