How to do Sale of Asset?

[nagesh]

Hi all,

How to do Sale of Asset and what is the Accounting Entry?

Thanks in advance.

[haider1781]

It is very simple go to Wrok Bench and select the asset that is to be sale.
Click on Retirements Tab > and enter the retireement cost and all other required information.

Entries:
Accumulated Dep xx
Proceeds of sale clearing xx
cost of removal Gain xx
Revaluation reserve xx
Net Book value Gain xx xx
Asset Cost xx
Proceeds of sale gain xx
cost of removal clearing xx
Revaluation Reserve gain xx xx


in case of sale in profit:
dr cr
Account Receivable
Proceeds of sales clearing

in case of loss:
Cost of Removal Clearing
Account Payable

[haider1781]

now in good form.
DR
Accumulated Dep xx
Proceeds of sale clearing xx
cost of removal Gain xx
Revaluation reserve xx
CR
Net Book value Gain xx xx
Asset Cost xx
Proceeds of sale gain xx
cost of removal clearing xx
Revaluation Reserve gain xx xx