Home For AAT student members General AAT student discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

Profit/Loss on Sale of Fixed Asset + Sage

Hi everyone,

I've got myself confused regarding where to post the Profit or Loss amount on the Sale of a Fixed Asset. According to FRS 102 Section 17.28 it states that any gains or losses (when derecognising) should not be recorded as revenue.

Therefore am I right in assuming that if I sold a FA resulting in a gain, would it be ok to post it to 4200 (Sale of Assets) as this would be shown as a separate item under "Sales" in the P&L which agrees with section 2.25(b).

Vice versa with a loss, post it to a Loss on Disposal account in the Expenses section i.e. 8005 etc.


If the FA is sold as a gain is this simply a re-adjustment of the calculated depreciation and should therefore be posted as a credit to an expense account i.e. 8005.


  • paulawelshpaulawelsh AAT Student, AATQB Posts: 14
    yes if fixed assets are sold they are for a loss: cr fixed asset account and dr sale of fixed assets

    kind regards

    Paula Welsh
Sign In or Register to comment.