Disposing of assets
When an asset is sold allowance must be made for whether a profit or loss was made on the sale.
To do this, record the sales transaction in the cash journal and also against the asset in asset maintenance.
To dispose of the asset edit the asset and check the Item disposed of box. A list of asset sales (those for the Asset Sales income account included in the Asset Configuration form) appears.
Select the relevant sales record.
When you click Save the residual depreciation is calculated and the tax value of the item set to zero.
When the sale of an asset is recorded the current tax value is used to calculate whether a profit or loss was made on the sale. The Trial Balance and Balance sheet reports display the total value of asset sales and their current value. Your accountant will need this information to be able to calculate the profit/loss on disposal.
The following report is a schedule of all assets to date.