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Where is the retirement of an asset recorded?
The "retirement" or "disposal" (as it's usually listed as) is recorded in a couple of different ways depending on how the asset is disposed of. One entry that will not change regardless of how the company disposes of the asset is the account related to said asset. For example, if the company is disposing of a truck, the one account entry that will not change will be Equipment-truck, this account will be credited for the balance. The fact that the fixed asset account has a debit balance, we now credit the account to bring it to a zero balance and remove the truck from our records. Company's may choose to dispose of, sale, or trade the fixed asset. Disposing of the fixed asset does not involve the exchange of money or another asset. Selling of the asset involves receiving cash for the asset. Trading involves receiving another asset in exchange for the asset the company is disposing of. This transaction will affect the balance sheet as it affects the assets of a company.
What is closing entry of asset?
closing entry of an asset means the adjustment entry we do on the last day of accounting year.
What are the journal entry for asset revaluation?
debit asset and credit asset revaluation
What is the Journal entry move land out of current assets?
Land is not a current asset and if recorded as current asset then no entry required to re-classify as fixed asset.
What is the entry for asset received as gift?
debit asset credit bank
What is the journal entry for donating fixed asset?
debit donationcredit fixed asset
What is the journal entry if asset appreciates?
Debit Asset accountCredit retained earnings
Double entry for Purchase fixed asset?
dr fixed asset cr bank
What is the difference between transfer and sale?
Transfer embodies every method of disposing of an asset, voluntary or involuntary. A sale is the voluntary transfer of an asset for consideration. You get something in return.
Journal entry to write off an asset?
debit accumulated depreciationcredit asset
What is the journel entry for commission receivable?
current asset
What is the journal entry for asset received as gift?
debit asset credit bank
