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.
⚡
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
QA
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.