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arkvalleyinfo
December 11, 2018
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Recording the sale of a property - clarification (Rustler)

  • December 11, 2018
  • 2 replies
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To Rustler-  I referenced your answer to a question from another person regarding entering a property sale into QB and did the following.... I created a "gain/loss on asset sale account" and calculated and posted the accumulated depreciation for this year.  I then did the following journal entry: debit accumulated depreciation $, credit gain/loss (same amount both entries)

(I did this for both the building and the improvement accumulated depreciation accounts.)

I have 2 questions...

1.) I need clarification for the dollar amounts for the following journal entry:

debit gain/loss and credit fixed asset $.  What $ amount gets applied to the debit gain/loss?  (Is it the same $'s associated with the fixed asset?)  

And as I understand your instructions I need to do a journal entry for each fixed asset account related to the sale?

2.) You stated "deposit the funds received and use the gain/loss account as the source (from) account for the deposit."  There is a "Received From" field and a "From Account" field in the Make Deposits .  What do I put in the field for "Received From" for the deposit?  Should I enter the Title company, or purchaser of the property who deposited the funds to the bank account?

    Best answer by Rustler

    tina

    Yes you use the total in the fixed asset account for the value to clear that account. ie if a building fixed asset account has the value of 150,000 the journal entry would be

    debit gain loss 150K
    credit fixed asset building 150K

    Yes each fixed asset account that was sold, and each associated accumulated depreciation account too

    In the deposit, leave received from blank, and just select the source (from) account.  Using received from would create a credit entry which you do not want to happen

    2 replies

    Rustler
    RustlerAnswer
    December 11, 2018

    tina

    Yes you use the total in the fixed asset account for the value to clear that account. ie if a building fixed asset account has the value of 150,000 the journal entry would be

    debit gain loss 150K
    credit fixed asset building 150K

    Yes each fixed asset account that was sold, and each associated accumulated depreciation account too

    In the deposit, leave received from blank, and just select the source (from) account.  Using received from would create a credit entry which you do not want to happen

      A
      arkvalleyinfoAuthor
      December 11, 2018
      I've got it now- thank you very much.  (This forum is so awesome!)
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        Flopadago
        February 12, 2019

        I opened a bank account and deposited $50,000: Debit Cash, Credit Equity 

        I purchased a house for $47,500+$2,500 of capitalized expenses so $50,000 all cash:  Credit Cash $50k, Debit Fixed Asset 68 Elm St. $50k

        I sell house for $60,000: I Debit Cash $60,000, Debit Fixed Asset 68 Elm St. $50,000,  Debit Income Account Sale of Real Estate. 

        Did I do it right? 

        This all happened in 30 days so I am ignoring depreciation on purpose. 

        I have a few other expenses but I am only recording capitalized asset above and will charge off other costs as "expenses" on the tax return. 

         

         

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        Flopadago
        February 12, 2019

        I see I forgot to say the amount the income account was Debited ($10K to balance to $60K)

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