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If an asset is sold for more than its carrying value, a gain on disposal occurs which will be recorded in the general journal.

The result is operating profit -- the profit the company made from doing whatever it is in business to do. Gains and losses from asset sales then go below operating profit on the income statement.

How to record disposal of assets Calculate the asset's depreciation amount. The first step is to ensure you have the accurate value of the asset recorded at the time of its disposal.Record the sale amount of the asset.Credit the asset.Remove all instances of the asset from other books.Confirm the accuracy of your work.

A disposal account is a gain or loss account that appears in the income statement, and in which is recorded the difference between the disposal proceeds and the net carrying amount of the fixed asset being disposed of.

When there is a loss on the sale of a fixed asset, debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.

Debit the disposal account if there is a loss on disposal. Credit the fixed asset account to reverse the original cost of the asset, and debit the disposal account. Credit the disposal account if there is a gain on disposal.

Asset disposal is the removal of a long-term asset from the company's accounting records. It is an important concept because capital assets are essential to successful business operations. Moreover, proper accounting of the disposal of an asset is critical to maintaining updated and clean accounting records.

The corresponding debit is in the statement of profit or loss and represents the loss on the disposal. if there is a credit entry to balance the account then this is a loss on disposal which is debited to the SPL as an additional expense.

When there is a gain on the sale of a fixed asset, debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account.

The most common types of non-operating expenses are interest charges or other costs of borrowing and losses on the disposal of assets.