General
Sale of Fixed Asset at a Gain
How to remove an asset from the books and record a profit on the sale.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset (+) | 15,000.00 | - |
| Accumulated Depreciation | Contra-Asset (-) | 5,000.00 | - |
| Equipment/Vehicle | Asset (-) | - | 18,000.00 |
| Gain on Disposal of Asset | Revenue (+) | - | 2,000.00 |
💡 Accountant's Note
You must 'flush out' both the original cost and the accumulated depreciation to zero out the asset's book value before recording the gain.
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