How to derecognize financial asset via sale
Records the disposal of a debt instrument held at amortized cost and the resulting gain or loss.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset | 105,000.00 | - |
| Financial Asset at Amortized Cost | Asset | - | 100,000.00 |
| Gain on Sale of Financial Assets | Revenue | - | 5,000.00 |
💡 Accountant's Note
When a financial asset is sold, the difference between the carrying amount and the consideration received is recognized in profit or loss.
Practitioner & Systems Framework
💻 ERP Architecture
The treasury or investment module should trigger these entries upon processing a disposal transaction.
⚠️ Audit Flags
Discrepancies between settlement date and trade date, and accuracy of the carrying amount net of impairment.
📄 Required Documentation
Trade confirmation, bank credit advice, and calculation of the amortized cost at the date of sale.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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