Sale of a Fixed Asset

Below are two options for the sale of a Fixed Asset based on depreciation. You would complete a journal entry to record this transaction.

1) Fully depreciated:

Dr. Cash

Cr. Fixed asset

Dr. Accum. Depreciation

Cr. Gain on Sale

2) Partially depreciated:

Dr. Cash

Cr. Fixed asset

Dr. Accum. Depreciation

Cr. Gain on Sale *OR Dr. 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.