Selling an Asset
Selling an Asset
To sell an asset, open the asset record and clicking on the Sell Asset button. This will take you to a Sales Invoice. In the Sales Invoice, enter details like Customer and Payment Due Date.
On submission of the Sales Invoice, following accounting entries will take place:
"Receivable Account" (Debtors) will be debited by the sales amount.
"Fixed Asset Account" will be credited by the purchase amount of asset.
"Accumulated Depreciation Account" will be debited by the total depreciated amount till now.
"Gain/Loss Account on Asset Disposal" will be credited/debited based on gain/loss amount. The Gain/Loss account can be set in Company record.
To sell an asset, open the asset record and clicking on the Sell Asset button. This will take you to a Sales Invoice. In the Sales Invoice, enter details like Customer and Payment Due Date.
On submission of the Sales Invoice, following accounting entries will take place:
"Receivable Account" (Debtors) will be debited by the sales amount.
"Fixed Asset Account" will be credited by the purchase amount of asset.
"Accumulated Depreciation Account" will be debited by the total depreciated amount till now.
"Gain/Loss Account on Asset Disposal" will be credited/debited based on gain/loss amount. The Gain/Loss account can be set in Company record.
Updated on: 29/03/2023
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