Sale of a Fixed Asset

You can use the Fixed Assets system via Inventory -> Assets to manage your fixed assets and calculate depreciation. You can also mark when an asset is sold or disposed of under the Asset Value section when editing an asset.

If you prefer to handle depreciation entries manually, below are two options for the sale of a Fixed Asset based on depreciation. You would complete a journal entry to record the transaction (Ledger -> Journal Entries -> New Journal Entries).

1) Fully depreciated:

Debit Cash

Credit Fixed asset

Debit Accumulated Depreciation

Credit Gain on Sale

2) Partially depreciated:

Debit Cash

Credit Fixed asset

Debit Accumulated Depreciation

Credit Gain on Sale *OR Debit Loss on Sale

The gain or loss is the offset to the transaction, so it depends on if the cash received is more or less than book value.