Eliminate depreciated fixed assets


B

Bill Bickner

We have accounts for fully depreciated fixed assets - one was sold several
years ago and the other is intangible (land surveying). Is there a way to
keep this deadwood from appearing on the balance sheet? Can the accounts
themselves be deleted, or isn't that proper accounting practice? Thanks for
your help.

Bill Bickner
 
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T

Tom Healy

<< We have accounts for fully depreciated fixed assets - one was sold several
years ago and the other is intangible (land surveying). Is there a way to
keep this deadwood from appearing on the balance sheet? Can the accounts
themselves be deleted, or isn't that proper accounting practice? >><BR><BR>

For the item that was sold, the account should now have a zero balance, along
with the associated accumulated depreciation. If the intangible hasn't been
fully written off, it isn't yet deadwood and should be retained.

Accounts that you don't want to show: edit the account and check the box for
"inactive account." That hides it (unless you then check the box in the account
list to "show hidden accounts.")


--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: (e-mail address removed), since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772
 
F

forked tongue

Tom said:
<< We have accounts for fully depreciated fixed assets - one was sold several
years ago and the other is intangible (land surveying). Is there a way to
keep this deadwood from appearing on the balance sheet? Can the accounts
themselves be deleted, or isn't that proper accounting practice? >><BR><BR>

For the item that was sold, the account should now have a zero balance, along
with the associated accumulated depreciation. If the intangible hasn't been
fully written off, it isn't yet deadwood and should be retained.

Accounts that you don't want to show: edit the account and check the box for
"inactive account." That hides it (unless you then check the box in the account
list to "show hidden accounts.")
Also most reports have a choice of not showing zero amounts.
 
?

_

But an asset that was sold should no longer be on the balance sheet.
It should have been removed at the time of sale - Credit Fixed Asset,
Debit Accumulated Depreciation, Debit Proceeds (Cash, A/R, etc.),
Debit or Credit Loss or Gain on Sale of Assets.

Also note that this accounting entry may not be the same as the method
of accounting for the transaction for tax purposes. If the amounts
are significant you should discuss this with your accountant.
 
G

GWB

But an asset that was sold should no longer be on the balance sheet. It
should have been removed at the time of sale - Credit Fixed Asset, Debit
Accumulated Depreciation, Debit Proceeds (Cash, A/R, etc.), Debit or Credit
Loss or Gain on Sale of Assets.<<

What about junk that's still on the balance sheet that for whatever reason
(broken, obsolete, etc.) is no longer used?
 
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