Disposal of fixed asset

[Jim & Grace Flowers]

One way to do this, especially since it is business related is as follows:
				
						Deposit
withdrawal
Asset:bank account			$200
Accumulated Depreciation		 639
Asset:old computer							$800
Income:sale of old computer						  39

For business purposes, you have remove the asset at the price you paid, plus
any accumulated depreciation.  I assume you have been recording the
depreciation.  If not, then your way will work.

Jim Flowers
-----Original Message-----
From: gnucash-user-bounces+dondiegoflores=verizon.net at gnucash.org
[mailto:gnucash-user-bounces+dondiegoflores=verizon.net at gnucash.org] On
Behalf Of Mike or Penny Novack
Sent: Tuesday, February 28, 2012 7:38 AM
To: Axel Essbaum
Cc: gnucash-user at gnucash.org
Subject: Re: Disposal of fixed asset

Axel Essbaum wrote:

>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
>>    
>>
I'm not an accountant either but ............. (and why we should only 
be giving "how to do using gnucash" as opposed to "how to do using any 
form of bookkeeping")

You need to keep separate income/expense from capital gains as opposed 
to income/expense from normal operations because you need that 
separation for tax purposes.

I'm going to point something out here. Basic accounting texts may show 
only one account used where we would use two, That's because in old 
fashioned pen and ink on paper bookkeeping it's easy with one account to 
have the totals for both sides of that ledger account. No automatic 
balance at each transaction and whether the (actual) net balance is 
debit or credit doesn't matter (in other words, just determines whether 
a net income or a net expense). With a autobalancing software easier to 
have two account.

Michael
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