Question asked by Stuart Holyman 11 years ago
If I were to have a fixed asset of 5000
Depreciation over 12 months of 1000
Leaving its value of 4000
Then sell it for 3500
I have lost 500
Where and what code does that loss or if it were a profit show on clearbooks?
Thank you
Hi Stuart,
First thing would be to create a P&L account called 'disposals' or something similar on the Settings>Codes menu. Next create the sales invoice of £3500 using the account code 'disposals' and allocate payment as appropriate.
Once complete you will need to create a journal to remove the asset from the balance sheet. To do this head to Tools>Journals and create a new journal with three lines to:
Cr Asset (the asset account used on the original purchase) 5000
Dr Accumulated depreciation 1000
Dr Disposals 4000
This should leave 500 on the Disposals account.
Hope that helps - if you have any further questions just let me know.
Accounting 
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