Solve Example for Journal Entry for Sale of Fixed Assets

 Welcome to all accounting students in today's post, we are going to solve some journal entries for sale of asset examples. These examples will help you to understand fixed asset journal entries and how to make sales of fixed assets journal entries.

Now let's move to the sale of asset journal entry:

Journal Entry for Sale of Asset

Let's say a company sold a delivery truck for 12,000. The original cost of the truck was 20,000, and it had accumulated depreciation of6,000.

Debit: Accumulated Depreciation - Delivery Truck (6,000)

Debit: Cash (12,000)

Credit: Delivery Truck (20,000)

• Debit Accumulated Depreciation to remove the accumulated depreciation associated with the truck.

• Debit Cash: record the money received from the sale.

• Credit Delivery:  Truck to remove the asset from the books.

This journal entry reflects that the company received 12,000 in cash for a delivery truck that had an original cost of 20,000 and had accumulated 6,000 in depreciation.

Conclusion

Here in this post, we add an example of sales of fixed assets journal entry so if you are an accounting student then you should read this post and solve the question and make a fixed asset journal entry.