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Sell a fixed asset using an invoice

I have fixed assets created and used the FA Cost account (a sub account of the FA) as the "Fixed Asset Account".  I've filled out the info for the fixed asset (desc, date of purchase, cost, etc).  I've recently sold several of my assets and did so using an invoice to a customer.  Received the payment and made the deposit.  Now, I am creating the GJ entries to remove the asset from my records and book the Gain/Loss, taking in consideration of any depreciation.  But, I realized that the invoice added an entry to my FA Cost account for the sales price.  So, when creating my GJ entry, should I credit the FA Cost account for the actual cost - the sales price?   

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Best answer 03-27-2019

Accepted Solutions
Established Community Backer ***

Re: Sell a fixed asset using an invoice


@rip55jcp wrote:

I realized that the invoice added an entry to my FA Cost account for the sales price.  


If you used an Item linked to the FA Cost account, then it should reduce not add to the cost, by the sales price. 

So the cost needs to be reduced to zero. 

Journal Entry:

Credit FA Cost with Orig cost less sales price (if it's the only asset in this account it s/be zero when done)

Debit Acc Dep with the acc dep for this asset

Debit or Credit the difference to an other income or expense account Gain/Loss on Disposal of FA

 

View solution in original post

1 Comment
Established Community Backer ***

Re: Sell a fixed asset using an invoice


@rip55jcp wrote:

I realized that the invoice added an entry to my FA Cost account for the sales price.  


If you used an Item linked to the FA Cost account, then it should reduce not add to the cost, by the sales price. 

So the cost needs to be reduced to zero. 

Journal Entry:

Credit FA Cost with Orig cost less sales price (if it's the only asset in this account it s/be zero when done)

Debit Acc Dep with the acc dep for this asset

Debit or Credit the difference to an other income or expense account Gain/Loss on Disposal of FA

 

View solution in original post

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