Disposal of fixed asset

[Axel Essbaum]

On Feb 28, 2012, at 8:01, Stein Erik Berget wrote:

> On Mon, 27 Feb 2012 17:57:44 +0100, Axel Essbaum <axel at essbaum.com> wrote:
> 
> 
>> Details:
>> 
>> I have an old laptop for my business.  It was purchased for $800 on 1.1.2009.  Its value today (after depreciation) is $161.  I just sold it for $200.  I understand I have $39 of profit but I really have no idea how to record it.  Is the $200 considered income?  Like, should it come from a "Sale of assets" income account?
> 
> I'm not an accountant, but I would do it like this:
> 
> As seen from the 'bank account':
> 			Deposit		Withdraw
> asset:bank account: 	$200
> asset:oldcomputer:                	$161
> income:sold off asset:					  $39
> 
> 
> This would result in $200 in our bank account as it would in real life, and you would also see your 'asset account' for the computer you just sold go to $0 and you will see a 'profit' in one 'income' account somewhere.
> 
> Hope this helps! If any more pointers are needed, let me know! :-D Have a happy accounting day :-P
> 

Yes, that's much simpler than the confusing "asset disposal" account.  Thanks!

--
Axel Essbaum
axel at essbaum.com