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Buy nowI want to remove a fixed asset, I have a portable building that i got rid of. It was set up with a depreciation also
It is nice to have you here, @autotekk189.
In QuickBooks, it's important to make sure you're deleting the correct account. I know an option that can help you on how to do it.
When removing an asset that has an accumulated depreciation, you'll need to create a journal entry.
Here's how:
As for your categories, it's best to consult your accountant for accuracy.
You can also visit this article for more information about asset disposal: What is asset disposal?
Moreover, you can utilize this article to help you give a snapshot of your business: Run reports.
Feel free to reach out if you have further question/s. I'll be here to assist you. Have a wonderful day!
Did you sell it or dispose of it? I'm going to assume you disposed of it.
The proper way to record this depends on the amount of depreciation taken. If it is fully depreciated, the accumulated depreciation should equal the original cost and the two will offset so make this journal entry (debits and credit must be equal):
Debit | Credit | |
Accumulated Depreciation (to close) | XXX | |
Fixed Asset (to close) | XXX |
If it is not fully depreciated, you will have a loss on the disposal of the asset. Here is the journal entry for that:
Debit | Credit | |
Accumulated Depreciation (to close) | XXX | |
Fixed Asset (to close) | XXX | |
Loss on disposal of asset (to balance) | XXX |
If you sold it, add a debit for the amount of cash received and then balance the journal entry using loss (if debit balances the JE) or gain (if credit balances the JE). Hope that helps.
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