Disposal with Cash Proceeds
Item number 27828 has this current account information:
Asset cost: 50,000.
Accumulated depreciation: -25, 000.
Net book value: 25,000.
This asset is being sold for 10,000.
Record and post the cash to GL and Fixed Assets (Cash Receipt Journal Entry).
Account Number |
Account Description |
Debit |
Credit |
|---|---|---|---|
50.1110. BEAR |
Cash |
10,000 |
N/A |
YARD.9113 |
Cash/Clearing Account |
N/A |
10,000 (Item number 27828) |
Create disposal entries as follows:
Account Number |
Account Description |
Debit |
Credit |
|---|---|---|---|
50.2030 |
Cost |
N/A |
50,000 |
50.2130 |
Accumulated Depreciation |
25,000 |
N/A |
YARD.9112 |
Net Book Value |
25,000 |
N/A |
YARD.9111 |
Proceeds from sale of assets |
N/A |
10,000 |
YARD.9113 |
Cash/Clearing Account |
10,000 |
N/A |
An entry to the Gain/Loss account 9110 is not made. However, when you run financial transactions, the balances on accounts 9112, 9111, and 9113 are rolled into account 9110 per the level of detail roll-up.
For example, this table illustrates the results of using the Accounts by Business Units program to inquire on the YARD business unit:
Account |
Subsidiary |
Description |
LOD |
|---|---|---|---|
9110 |
N/A |
Gain on sale of assets |
5 |
9111 |
N/A |
Proceeds from asset disposal |
6 |
9112 |
N/A |
Net book value of assets disposed |
6 |
9113 |
N/A |
Cash proceeds clearing account |
6 |
In this example, these values exist (10,000 original entry + 10,000 entry made during disposal):
Value |
Account |
|---|---|
25,000 |
YARD 9112 |
10,000 |
YARD.9111 |
0 |
YARD.9113 |
There is a 15,000 loss.