Disposal of fixed asset

[Axel Essbaum]

I have been recording the depreciation annually.  The "Asset: old computer" account started at 800 in 2009 and is now at 161.  So I need to remove 161 from it to be at 0.

Is the Accumulated Depreciation account below an Expense account?  Is it a temporary account for use when disposing of an asset or are you suggesting I log all ongoing depreciation there…?

On Feb 28, 2012, at 16:15, Jim & Grace Flowers wrote:

> 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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--
Axel Essbaum
axelessbaum at gmail.com