Journal Entry For Disposal of Assets Not Fully Depreciated
What is The Journal Entry Of Sale Of Fixed Assets / Non Current Assets Partially Depreciated For The Year? When a Fixed Asset or Non-Current Asset purchased by the business disposed off or sold out in the market for cash or exchanged with the new one, then we credit such fixed asset with its historical cost and debit Accumulated Depreciation charged on it upto its use (from the date of purchase) in the business. The amount of cash received is debited and the difference of debit and credit amounts is recorded accordingly in the entry to make balance of debit and credit amounts. If the cash amount is more than the book value of fixed asset, the company gains and if less than the company faces loss on Disposal of Fixed Asset . In a disposal account, if the credit side exceeds the debit side, then there is a gain on sale of fixed asset and if the debit side is higher than the credit side, then it is a case of loss on sale of fixed asset. The journal entry to record for disposal of...