Sale of Assets at Gain or Loss: Sale of the assets means the asset has been disposed of which he have fetched a realizable value (sale value less selling expense). When Realizable value has been received and it is more than book value of the asset (cost of asset as deducted by accumulated depreciation on date of sale), then the difference shall be recorded as gain on sale of assets and if the realizable value of assets is less than the book value, then the difference shall be recorded as loss on sale of assets. However, on sale of assets both the asset account and its related accumulated depreciation account shall be closed in the books, as the assets seized to exist in the business. TheJournal entries for the sale of assets.

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Chapter 10, Problem S10.10SE

To determine

Sale of Assets at Gain or Loss:

Sale of the assets means the asset has been disposed of which he have fetched a realizable value (sale value less selling expense). When Realizable value has been received and it is more than book value of the asset (cost of asset as deducted by accumulated depreciation on date of sale), then the difference shall be recorded as gain on sale of assets and if the realizable value of assets is less than the book value, then the difference shall be recorded as loss on sale of assets. However, on sale of assets both the asset account and its related accumulated depreciation account shall be closed in the books, as the assets seized to exist in the business.

TheJournal entries for the sale of assets.

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