Profit on Sale Fixed Asset
System
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Sorry haven't done this for a long time.
We sold a vehicle at auction. The value in the accounts was written down to zero so that bits easy. But do I post the amount we actually received to profit on sale or the amount it sold for and post the auction fees to expenses? (think it the second one but would like some reassurance)
We sold a vehicle at auction. The value in the accounts was written down to zero so that bits easy. But do I post the amount we actually received to profit on sale or the amount it sold for and post the auction fees to expenses? (think it the second one but would like some reassurance)
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Re:Profit on Sale Fixed Asset
When you're working out the profit on the sale of an asset for capital gains purposes (which i know isn't the case in your situation), you definately deduct incidental costs of the sale (valuation fees, advertising & auction fees etc) from the proceeds as part of the calcualtion, so I would imagine that the same applies in your situation. I would post the net amount that you received to the asset disposal account, or if you wanted to acknowledge the aution fees then Dr the gross amount to the disposal account and Cr the Auction fees to that account too.
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