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devinitysoul
February 7, 2020
Solved

What are the entries for sale of asset

  • February 7, 2020
  • 1 reply
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Best answer by Rustler

Create an income account called gain/loss on asset sales.
Calculate and post partial year depreciation (if this asset is subject to depreciation).

Then journal entries
debit accumulated depreciation and credit gain loss for the amount in the accumulated depreciation account (if this asset is subject to depreciation)

debit gain loss and credit the fixed asset account for the total in the fixed asset account

enter the payment for the sale as a deposit and use the gain loss account as the source account for the deposit

1 reply

Rustler
RustlerAnswer
February 7, 2020

Create an income account called gain/loss on asset sales.
Calculate and post partial year depreciation (if this asset is subject to depreciation).

Then journal entries
debit accumulated depreciation and credit gain loss for the amount in the accumulated depreciation account (if this asset is subject to depreciation)

debit gain loss and credit the fixed asset account for the total in the fixed asset account

enter the payment for the sale as a deposit and use the gain loss account as the source account for the deposit

    C
    cfvbookkeeping
    November 5, 2020

    How is the sales commission booked ? As the total sales income or slip btween sales income and commission expense

    DivinaMercy_N
    DivinaMercy_N
    November 5, 2020

    I'm glad to see you here, @cfvbookkeeping.

     

    To record the sales commission in QuickBooks Online (QBO), you may create a service item named sales commission.

     

    Here's how:

     

    1. Click the Settings/Gear icon and pick Products and Services. 
    2. On the Products and Services page hit New.
    3. Select Service. 
    4. Input the service information then tap Save and close. (Note: When adding non-inventory items and services, check the I sell this product/service to my customers box to make these items and services show up when creating invoices and bills.) 

     

    Use the service item on the sales receipt when you receive the commission and then deposit the funds. 

     

    For your future reference, you may open this article to help you track sales commission in QBO: Track sales commissions.

     

    Should you need anything else, don't hesitate to comment below. I'm always around to help if you have other questions in recording sales commission in QuickBooks. Stay safe and take care always. 

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