Q:

What is the journal entry to write off an asset?

A:

Quick Answer

Write off an asset when it is determined that it is no longer useful. The journal entry is as follows: Credit (asset to be written off), Debit (accumulated depreciation), and Debit (loss on disposal).

Continue Reading

Full Answer

Because the asset is no longer be used, it must be completely eliminated from the books. Crediting the asset for its total cost and debiting the accumulated depreciation on the asset remove from the books all the accounts associated with that asset. If the asset has not completely depreciated at the moment of disposal, use an additional debit to the loss on disposal account to represent fully the effects of the write-off on shareholder's equity.

Learn more about Accounting

Related Questions

Explore