top of page

Disposal of Fixed Assets

Writer's picture: EH LimEH Lim

An Office Equipment which has a cost of $2,250.00 and accumulated depreciation of $1,500.00 as of your Balance Sheet report; then you sell off this asset at $500.00 before GST.

Balance Sheet

Office Equipment: 2,250.00

Accumulated Dep – Office Equipment. (1,500.00)

To record the disposal of fixed asset in MoneyWorks, first you create a new expense account (You may check with your accountant on the type of account use), and name it as “Disposal of Fixed Asset”.

You use the Sales Invoice transaction to record an invoice to your customer and use the “Disposal of Fixed Asset” account under the Account tab. The double entries for this Sales Invoice will be:

Debit Accounts Receivable: 535.00

Credit Disposal of Fixed Asset: 500.00

Credit GST Output (based on 7% GST): 35.00

Next, you pass a journal, the journal detail as:

Debit: Accumulated Dep – Office Equipment: 1,500.00

Debit: Disposal of Fixed Asset: 750.00

Credit Office Equipment: 2,250.00

From the Profit and Loss report, there will be a 250.00 debit balance at the “Disposal of Fixed Asset” account.

Both “Office Equipment” account and “Accumulated Dep – Office Equipment” account will be zero in balance as the balances had transferred to the “Disposal of Fixed Asset” account.

348 views0 comments

Recent Posts

See All
Contact MoneyWorks

Visit

33 Ubi Avenue 3 #07-50 VERTEX (Tower A) Singapore 408868 

Contact us

Call

T: +65 6634 6065

F: +65 6337 2616

Contact us
  • Facebook
Copyright

© 2023 by

LedgerWorks Pte Ltd

Proudly made by Wix.com

bottom of page