FA Disposal accounts in two places

Hi ,

When we open the FA Posting profile , left side we have grids Disposal sale and Disposal scrap against that we will define the accounts .

Apart from these accounts right side we have one more Disposal Menu button .

what is this ?

Through the Disposal menu button, you can define how you want to post the accumulated depreciation, depreciation this year, any provisions…etc and calculate the net profit or loss, when there is sale or scrap of the asset.

-Jagadeesh K

Thanks Jagadesh,

Can you explain about these accounts also , which accounts will define here ?

Here you can have different or the same account as Fixed Asset posting accounts for Acquisition and Depreciation.

When any Fixed Asset is sold then original Acquisition value, Adjustments and depreciation are reversed to above accounts and difference of the Sale/ Scrap Value less net book value is posted to Profit/ Loss Account.

Hi Sachin ,

I could not understand the above statement . Request you please explain with an example and values .

These are the accounts where Acquisition and Depreciation entries were posted originally.

Now when asset is sold/ scrapped these entries also needs to be reversed to exclude this balance from the Books of Accounts.


One car is purchased for $10000 and posted to GL - 10001

Accumulated Depreciation $1000 Posted to GL - 10002

Asset Sold for $7000

Now above entries would be revered to above same accounts when Asset would be Sold/ Scrapped