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Selling an Asset
Posted: Fri Jun 24, 2011 10:18 am
by fcpendleton
How do I post the sell of the church van into accounting and defer the funds to a current remodel project
Re: Selling an Asset
Posted: Fri Jun 24, 2011 10:58 am
by NeilZ
rockage wrote:How do I post the sell of the church van into accounting and defer the funds to a current remodel project
This sounds like a two part question.
1. Sell the asset, money goes into operating fund.
2. Transfer amount from operating fund to building fund.
This sound about right ??
Re: Selling an Asset
Posted: Fri Jun 24, 2011 12:29 pm
by fcpendleton
when I post the money in operating
I debit the bank account
I credit the asset account?
Re: Selling an Asset
Posted: Fri Jun 24, 2011 2:58 pm
by Jeff
Is the van currently listed as an asset? If so what is the value of it on your books?
Re: Selling an Asset
Posted: Fri Jun 24, 2011 3:37 pm
by fcpendleton
Yes the Van is on the books as an asset
Re: Selling an Asset
Posted: Fri Jun 24, 2011 3:42 pm
by fcpendleton
sorry yes I listed sepratly two vans and a trailer on the books totaling 12830.00
total accum depre -10264.00
Re: Selling an Asset
Posted: Fri Jun 24, 2011 4:20 pm
by Jeff
To record the sale of an asset with depreciation you need to know the original price, the total depreciation and the sales price. You need to record the amount of cash you received, remove the original price of the asset and associated depreciation. Any difference will be a gain or loss on the sale.
For example:
Original price: 8,000
Accumulated Depreciation: 6,000
Sales Price: 4,000
The accounting entry would look like this:
Code: Select all
DEBIT CREDIT
Cash 4,000
Van Asset 8,000
Accumulated Depreication 6,000
Gain on Sale (income acct) 2,000