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 Calculate Depreciation Using the Sum of the Years' Digits?
A: To calculate depreciation using the sum of the years' digits, divide the undepreciated useful life of the asset by the sum of the years' digits, and then m... 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 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:
What Is the Difference Between Capital and Revenue Expenditure?
A: A capital expenditure includes all costs incurred on the acquisition of a fixed asset along with subsequent expenditures that increase the asset's earning ... Full Answer >Filed Under:
