Selling an Asset
To sell an asset, open the asset record and clicking on the "Sell Asset" button. This will lead you to a Sales Invoice. Enter details like Customer, Payment Due Date, and Debit To account in the Sales invoice and submit it.
On submission of the Sales Invoice, following accounting entries will take place:
- "Receivable Account" (Debtors) will be debited by the sales amount.
- "Fixed Asset Account" will be credited by the purchase amount of asset.
- "Accumulated Depreciation Account" will be debited by the total depreciated amount till now.
- "Gain/Loss Account on Asset Disposal" will be credited/debited based on gain/loss amount. The Gain/Loss account can be set in Company record.
- Asset Value Adjustment
- Purchasing an Asset