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 NameTypeDebit ($)Credit ($)
CashAsset (+)2,000.00-
Accumulated DepreciationContra-Asset (-)6,000.00-
Loss on Sale of AssetExpense (+)2,000.00-
EquipmentAsset (-)-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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