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Brandy83
Level 1

Need step by step help with recording the sale of a fixed asset

I need help with the entire process of recording the sale of a fixed asset. As if I knew absolutely nothing about QuickBooks. From the deposit (the source it should come from) to the general journal entries needed. I am afraid I am going to double the deposit!

2 Comments 2
Rainflurry
Level 13

Need step by step help with recording the sale of a fixed asset

@Brandy83 

 

Has this asset been fully depreciated?  If not, make sure you update the depreciation up until the day of the sale.  I would recommend checking with your CPA, but here is a journal entry to record the sale assuming there was no outstanding liability (loan) that was paid off and you sold it for cash:

 

 DebitCredit
Cash (sale price of the asset)XXX 
Accumulated Depreciation (to clear account)XXX 
      Fixed Asset (original cost - to remove from books) XXX
Gain/Loss to balance (debit if    loss/credit if gain)  

 

 

 

Brandy83
Level 1

Need step by step help with recording the sale of a fixed asset

Depreciation does not apply to this item. Do I make a deposit of the cash as normal? In the journal entries, what accounts do I use? I understand the debit/credit scenario, just don't understand the accounts that should accompany the debit/credit. 

 

Account                                                                     Debit                                            Credit

Cash -   The account it was deposited into?

Fixed Asset - storage building?

Gain/Loss - Account it was deposited into?

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