I am wondering what journal do I have to do when I sell assets of my business. I know it isn't revenue and I want to decrease my assets account. The other problem is that I am seeling a piece of equipment that I paid $4000.00 for and am now selling it for the used market value of $2800.00. I need to decrease my asset account for more than the actual sale of the used equipment? I can't wrap my head around this, any help would be appreciated.
Thanks
Jen
You would do the following entry on your books:
Debit Credit
Cash 2800 Depreciation XXXX (amount of depreciation taken on the asset) Equipment
4000If you then have to add to the debit side to make the entry balance you would have a loss on disposal of the equipment. If you have to add to the credit side to balance the entry you would have income as a gain on the disposal.
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