![]() ![]() As for the Profit & Loss report, it will show a debit balance (loss) in the Disposal of Fixed Asset account for the amount of $1,000.00. In the Balance Sheet report, both the Acquisition cost and Accumulated Depreciation account of the Furniture & Fitting will be zeroed off. Next, we create a General Journal:ĭebit Accumulated Depreciation – Furniture & Fitting account: 2,000.00ĭebit Disposal of Fixed Asset account: 1,000.00Ĭredit Acquisition cost – Furniture & Fitting account: 3,000.00 ![]() How to record this transaction in QuickBooks?įirst, we need to create a new Disposal of Fixed Asset account (use Other Income account type, this account will be shown in the Profit & Loss report). If this conference table still has 1 year of usable life That is, the Net Book Value of this conference table is $1,000.00. The depreciation method used for Furniture & Fitting is a straight line method with 3 years of usable life. In QuickBooks, how are we going to record this transaction?Īcquisition cost of a Conference Table (Under Furniture & Fitting) is $3,000.00. In business, we do dispose of Fixed Assets after it usable life. ![]()
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