[Debit] Loss on sale of equipment xxxx
[Credit] Asset account xxxx
Debit cash / bankCredit equipment
debit equipment accountcredit promisary note
Debit promissory noteCredit sale of asset
debit cash / bankdebit accumulated depreciationdebit loss on sale (if any)credit assetcredit profit on sale (if any)
Debit cash / bankdebit loss (if any)Credit inventory account
Debit cash / bankCredit equipment
debit equipment accountcredit promisary note
debit equipment accountcredit cash / bank
Debit promissory noteCredit sale of asset
debit notes receivablecredit sales account
debit cash / bankdebit accumulated depreciationdebit loss on sale (if any)credit assetcredit profit on sale (if any)
Debit cash / bankdebit loss (if any)Credit inventory account
profit
The amount received for sale of the vehicle with depreciation is compared to the vehicle's net value and debited as a loss or credited as a gain.
Debit cash / bankdebit accumulated depreciationdebit loss (if any)Credit Vehicle accountcredit profit (if any)
Loss on sale of equipment is shown in income statement as other loss.
When recording a journal entry for a sales account, ensure that the sales are strictly done on credit terms.