Selling an Asset

[fcpendleton]

How do I post the sell of the church van into accounting and defer the funds to a current remodel project

[NeilZ]

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 ??

[fcpendleton]

when I post the money in operating
I debit the bank account
I credit the asset account?

[Jeff]

Is the van currently listed as an asset? If so what is the value of it on your books?

[fcpendleton]

Yes the Van is on the books as an asset

[fcpendleton]

sorry yes I listed sepratly two vans and a trailer on the books totaling 12830.00
total accum depre -10264.00

[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