When the Company decide to write off the fixed asset, the following entries will be passed:
Dr. Accumulated Depreciation
Dr. Loss on Asset written off (if any)
Cr. Fixed Asset ( at cost)
The company would write off the fixed asset in the following circumstances:
1) The company may write off the fixed asset, if the assets are no longer in feasible use.
2) The fixed assets have been fully depreciated.
In case 1 above, the company might incurred a loss on fixed asset written down if the net book value is > nil. Whereas, when the assets have been fully depreciated ( as in case 2), no losses will be incurred upon written off.
debit loss of assetscredit fixed asset account
[Debit] Accumulated Depreciation [Debit] Cash (if any) [Credit] Assets
There is no journal entry when equipment rented out to somebody as there will be entry when actual rent received.
debit cash / bankdebit accumulated depreciationdebit loss (if any)credit fixed asset accountcredit profit (if any)
Debit Accumulated Depreciation. Credit the appropriate Fixed Asset account for the originally capitalized amount. Note: Asset retired and donated.
debit accumulated depreciationdebit loss on assetcredit fixed asset account
debit loss of assetscredit fixed asset account
[Debit] Accumulated Depreciation [Debit] Cash (if any) [Credit] Assets
journal entry to write off a loan
Debit accumulated depreciationdebit loss on disposalCredit fixed asset account
There is no journal entry when equipment rented out to somebody as there will be entry when actual rent received.
write up the entries required in revaluation account?
we start it with a date,write about the topic using ''I''
Journal Entry: Orientation Reflection
debit cash / bankdebit accumulated depreciationdebit loss (if any)credit fixed asset accountcredit profit (if any)
When the Company decide to write off the fixed asset, the following entries will be passed: Dr. Accumulated Depreciation Dr. Loss on Asset written off (if any) Cr. Fixed Asset ( at cost) The company would write off the fixed asset in the following circumstances: 1) The company may write off the fixed asset, if the assets are no longer in feasible use. 2) The fixed assets have been fully depreciated. In case 1 above, the company might incurred a loss on fixed asset written down if the net book value is > nil. Whereas, when the assets have been fully depreciated ( as in case 2), no losses will be incurred upon written off.
dear ........................