loss on sale of fixed asset

[mathai]

machinery bought for $.10000.00
Accumulated depreciation as on the date of sale-$.2000
Net Book value as on the date of sale: $.8000
sold for $.5000
Loss: $.3000

what are the journal entries to be passed.
How to show in the cash flow statement.

Thanks

 

[bklynboy]

Simply:

Debit Cash 5000
Debit Accum Depreciation 2000
Debit Loss on Sale of Asset 3000
Credit Machinery Asset 10000

For cash flow are you using direct or indirect method?

 

[mathai]

Thanks
using Direct methord

 

[bklynboy]

Your change in cash will be 5000 and shows up in Cash flow in Investing Activities which is where sales of long term assets are shown.

 

[mathai]

thanks