General
Sale of Fixed Asset at a Loss
Removing an asset from the books when it is sold for less than its net book value.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset (+) | 2,000.00 | - |
| Accumulated Depreciation | Contra-Asset (-) | 6,000.00 | - |
| Loss on Sale of Asset | Expense (+) | 2,000.00 | - |
| Equipment | Asset (-) | - | 10,000.00 |
💡 Accountant's Note
The asset was worth $4,000 on the books ($10k cost - $6k dep) but sold for $2,000. The $2,000 difference is recorded as a loss on the income statement.
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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.