How to record the liquidating old furniture

Hi @lethithanhtu 

According to CRA, any capital assets worth $500 or more are to be capitalized rather than expensed.  Your entry last year should have been to a Fixed Asset account for Furniture & Fixtures.  Then you would have claimed some depreciation last year and this year, reducing the value of the asset on your books and increasing your depreciation expense. In addition, this year, you would have recorded your sale against the asset.  Any difference would be put to Gain/Loss on Sale of Fixed Assets income/expense account.   This is what should have happened.  If any income was to be recorded, it should be to the Gain on Sale of Fixed Assets, but only if the $250 was more than the depreciated book value of the asset.  It's likely that you wouldn't have had time to depreciate it much due to the half-year rule, so you likely would have had a loss instead. 

However, since you expensed the desk, then you would credit the same account you expensed it to (office supplies) when you sold it.  It isn't really true 'income' for your business, unless you're in the business of selling desks.