How does one write a fixed asset disposal journal entry? Assets are bought and sold everyday. Knowing the proper accounting will make year end much eaiser for your business. First, the depreciation expense of the asset must be recorded up to date. Second, the cost of the asset as well as the accumulated depreciation for the asset must be removed. Third, the amount of money received for the
. asset needs to be recorded. Finally, any difference in what was paid for the asset versus what it was sold for must be reported as a gain or loss. An example of the journal entry can be found at http://blog.accountingcoach.com/asset-disposal-entry/.
