loss on sale of fixed asset


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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
 

bklynboy

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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

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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.
 

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