Get 50% OFF QuickBooks for 3 months*

Buy now
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Work smarter and get more done with advanced tools that save you time. Discover QuickBooks Online Advanced.
autotekk189
Level 1

removing an asset

I want to remove a fixed asset, I have a portable building that i got rid of. It was set up with a depreciation also

2 Comments 2
IrizA
QuickBooks Team

removing an asset

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: 

 

  1. Go to +New
  2. Under the Other tab, choose Journal Entry

 

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! 

Rainflurry
Level 15

removing an asset

@autotekk189 

 

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):

 

 DebitCredit
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:

 

 DebitCredit
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.

Need QuickBooks guidance?
Log in to access expert advice and community support instantly.

Need to get in touch?

Contact us