Sale of an asset

[lindac]

We recently sold 2 cargo trailers that the church has owned for a couple of years. I set up an income account for the funds received. Can you please explain to me how to reflect the sale in assets and depreciation?
I understand that I will credit the specific asset account but am not sure what to debit. I am also not sure how to adjust accumulated depreciation which I have set up as a credit account in assets.
We use PC version 9. Also, explain simply please. Thank you.

[Jeff]

Here is an example of how you would enter a sale of an asset that you have depreciated. If you have a 10,000 asset that has been depreciated 5,000 and the sales price is 6,000

Your entry would be

Code: Select all

Acct        Title                      Debit   Credit
01-1110-000 Cash                       6,000            && amount of cash reeived
01-1910-000 Asset to be sold                   10,000   && takes the asset account to 0
01-1950-000 Accumulated depreciation   5,000            && removes the depreciation associated with the asset
01-4710-000 Gain on sale of asset              1,000    && recognizes the gain for selling the asset over the current book value

[lindac]

Thank you for your help.