In the prior post we looked at how to sell an asset in GO HERE.
And since the cost of the asset was in the balance sheet, this left balances in the asset and a loss in this scenario still to be dealt with. The way to finish off the sale is to raise the following journal.
DR Sale of Asset 50,000 Sale account
CR Loss on Sale of Asset 50,000 Create an expense account
DR Loss on Sale of Asset 60,000
DR Accum. Depn – Asset 0 (Enter what is on the Bal Sheet if a figure there)
CR Asset (at cost) 60,000
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