Gain on Fixed Assets Sale

Code: 4831
👁 Views: 94

Account Information

Financial Statement Income Statement
Normal Balance Credit

Definition

Gains realized when fixed assets are sold above their net book value

Common Journal Entries

Gain on sale of fixed asset

Dr. Bank
Dr. Accumulated Depreciation
Cr. Fixed Asset
Cr. Gain on Fixed Assets Sale

Transfer gain to income

Dr. Gain on Fixed Assets Sale
Cr. Income Summary

Gain on exchange of fixed asset

Dr. New Asset
Cr. Old Asset
Cr. Gain on Fixed Assets Sale

Gain on disposal of asset

Dr. Accumulated Depreciation
Cr. Fixed Assets
Cr. Gain on Fixed Assets Sale

Gain on sale of fixed asset

Dr. Bank
Dr. Accumulated Depreciation
Cr. Fixed Asset
Cr. Gain on Fixed Assets Sale

Transfer gain to income

Dr. Gain on Fixed Assets Sale
Cr. Income Summary

Gain on exchange of fixed asset

Dr. New Asset
Cr. Old Asset
Cr. Gain on Fixed Assets Sale

Gain on disposal of asset

Dr. Accumulated Depreciation
Cr. Fixed Assets
Cr. Gain on Fixed Assets Sale

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 16 Property, Plant and Equipment
US GAAP ASC 360 Property, Plant and Equipment

❓ Frequently Asked Questions

Q: How is gain on sale of fixed asset calculated?

A: Sale price - (Historical cost - Accumulated depreciation). If positive, it is a gain.