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 ReadingFull 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 AccountingRelated Questions
-
Q:
How Do You Account for an Operating Lease?
A: Operating leases are treated as rental expenses for the lessee, and refer to contracts that permit use, but not ownership, of an asset. Operating leases ar... Full Answer >Filed Under: -
Q:
What Is Turnover in Accounting Terms?
A: Turnover refers to the number of times an asset must be replaced during a company's financial period, according to Investopedia. Turnover usually refers to... Full Answer >Filed Under: -
Q:
Is Accumulated Depreciation Considered a Liability?
A: Accumulated depreciation is considered a contra asset, appearing as a negative balance underneath the asset to which it is assigned in the asset section on... Full Answer >Filed Under: -
Q:
What Do Accountants Need to Know About Fixed Asset Policy?
A: A fixed asset policy should address bookkeeping during the purchase planning stage all the way to retirement and disposal, reports the Houston Chronicle. F... Full Answer >Filed Under:
You May Also Like
-
Q:
How Do You Write a Letter of Transfer of Ownership?
-
Q:
How Do You Find Good Templates for Business Invoices?
-
Q:
What Are the Rules and Regulations of HSA Accounts?
-
Q:
How Do You Create a Leave and Earnings Statement?
-
Q:
What to Write in a Good Luck Card?
-
Q:
How Do You Write a Case Study in APA Style?
