Asset Sell Or Dispose

$9.95

ASSET SELL OR DISPOSE

Asset disposal is the removal of a long-term asset from the companys accounting records. It is an important concept because capital assets are essential to successful business operations. Moreover, proper accounting of the disposal of an asset is critical to maintaining updated and clean accounting records. Similarly asset selling is also an important factor to maintain the assets effectively.

Features

  • Asset Selling
  • Asset Disposal.
  • Maintaining Asset Accounting Records.
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How to use this module

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Here we can see an invoice, for the product Laptop with asset category Computers. The Price for this particular asset is 12000. Which means we had bought this asset for 12000.

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Now, under the accounting menu, in assets an asset for Laptop is created and in the gross value the price is 14000. Which means we are planning to sell it at price 14000.

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From the depreciation lines, we can post manually , now since, first depreciation line is posted one journal entry gets created. By clicking on sell or dispose we can choose option to sell or dispose the asset.

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Here, in the action we can choose sell and the related invoice for the particular asset. Now automatically the Gain Account is shown, this is because the value in our invoice is 12000 and the gross value is 14000. Since, we are selling for more price than purchased, it will be posted in the Gain account.

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After we click on sell, the journal entries is created and the difference amount between sell and purchase value is recorded in the gain account.

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After posting the entries, it will change the state to close and 2 journal entries are generated, one which we posted manually and automatically created entry after selling.

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Now in the second case if we provide the Gross Value as 10000 which less than the purchase price.

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From the depreciation lines, we can post manually , now since, first depreciation line is posted one journal entry gets created. By clicking on sell or dispose we can choose option to sell or dispose the asset.

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Here, it will go to the Loss Account and the difference will be recorded in the Loss Account.

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Apart, from selling we can also dispose the asset which is no longer required. From action you can select dispose to dispose the asset.

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After selecting dispose , the amount will be recorded in the loss account automatically.

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