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.
Next: Asset Depreciation