Loss on Fixed Assets Sale

Code: 5321
👁 Views: 106

Account Information

Financial Statement Income Statement
Normal Balance Debit

Definition

Losses incurred when fixed assets are sold below their net book value

Common Journal Entries

Loss on sale of fixed asset

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

Loss on disposal of fixed asset

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

Transfer asset losses to income

Dr. Income Summary
Cr. Loss on Fixed Assets Sale

Loss on destruction of fixed asset

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

Loss on sale of fixed asset

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

Loss on disposal of fixed asset

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

Transfer asset losses to income

Dr. Income Summary
Cr. Loss on Fixed Assets Sale

Loss on destruction of fixed asset

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

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 21 / IAS 16 / IFRS 9 / IAS 36 Multiple Standards
US GAAP ASC 830 / ASC 360 / ASC 320 / ASC 326 / ASC 350 Multiple Standards

❓ Frequently Asked Questions

Q: How is a loss on sale of a fixed asset recorded?

A: Dr. Bank Account (sale proceeds), Dr. Accumulated Depreciation (total depreciation), Dr. Loss on Asset Sale (loss amount), Cr. Fixed Asset (historical cost).