![]() ![]() If there are any proceeds from the sale, you should record them accordingly. When an asset is disposed of, all of the assets’ accumulated depreciation must be removed from the Accumulated Depreciation account with a debit entry. The Accumulated Depreciation account contains all the life-to-date depreciation of an asset and appears on the balance sheet as an offset to the Fixed Assets account. You can learn more about items to be included in the original cost of a fixed asset in our article on fixed asset accounting. When an asset is disposed of, the Fixed Assets account must be credited for the original cost of the fixed asset. The Fixed Assets account appears on the balance sheet and contains the original cost of all fixed assets. This amount can be determined by whatever is necessary to make the journal entry balance.
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