loss on sale of fixed asset

Discussion in 'General Accountancy Discussion' started by mathai, Mar 14, 2018.

  1. mathai

    mathai

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    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
     
    mathai, Mar 14, 2018
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  2. mathai

    bklynboy VIP Member

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    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?
     
    bklynboy, Mar 14, 2018
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  3. mathai

    mathai

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    Thanks
    using Direct methord
     
    mathai, Mar 15, 2018
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  4. mathai

    bklynboy VIP Member

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    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.
     
    bklynboy, Mar 15, 2018
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  5. mathai

    mathai

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    thanks
     
    mathai, Mar 27, 2018
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