Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: SALE OF ASSET WITH BOOK VALUE

Bottom of Page

1 to 3 of 3

  1.  
    • CommentAuthorCAROLINE
    • CommentTimeJan 25th 2010
     
    I am just wanting to verify how to make this entry:
    vehicle was purchased for $19,035
    vehicle has depreciation of $18687
    vehicle was sold for $600.00

    I am thinking:
    debit depreciation for $18,687
    credit cost of asset $19,035
    credit gain on sale $348
    • CommentAuthorArcSine
    • CommentTimeJan 26th 2010
     
    Close, but not quite. $348 is the remaining book value of the asset (original cost less accumulated depreciation), and its gain is therefore 600 - 348 = 252.

    Your first two lines are correct. Then credit Gain for 252 and debit Cash for 600, and call it a day.
  3.  
    Great Arcsine you are right and i agree with you. I agree with you.

1 to 3 of 3

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,440 Visitor Testimonials



What's on AccountingCoach.com?