Selling an Asset

To sell an asset, open the asset record and clicking on the Sell Asset button. This will take you to a Sales Invoice. In the Sales Invoice, enter details like Customer and Payment Due Date.

On submission of the Sales Invoice, following accounting entries will take place:

  • "Receivable Account" (Debtors) will be debited by the sales amount.
  • "Fixed Asset Account" will be credited by the purchase amount of asset.
  • "Accumulated Depreciation Account" will be debited by the total depreciated amount till now.
  • "Gain/Loss Account on Asset Disposal" will be credited/debited based on gain/loss amount. The Gain/Loss account can be set in Company record.

Asset

  1. Asset Value Adjustment
  2. Purchasing an Asset

Next: Asset Depreciation