Fixed Asset Entry

Hi all,

i have an query regarding the fixed asset , I have put opening the for the certain item.

than i Depreciation for this item next two time, after this i sale this particular time. now if i go see the ledger item it shows the difference of in ledger .

FA Posting Type Amount
Acquisition Cost 598,860.00
Depreciation -108,393.66
Depreciation -88,774.41
Depreciation -18,126.76
Proceeds on Disposal -90,000.00
Gain/Loss 293,565.17
Acquisition Cost -598,860.00
Depreciation 215,294.83

now if total this it show this difference.

any one has idea why this difference is coming.

Regards,

Shailesh

What is your doubt here… i cant understand clearly… System entry was correct…

Where is difference ??

Hi Mansoor & Amol,

my question is that i have one fixed assest whose acquistion
cost is 598860
after that , cost depreciation has been done 3 time.
if you subtract this from acquisition cost it will be
around this 383565.93
after this we sale this particular item at 90000
now i here we have a loss of 293565.17

now if you add all these line than you see the difference of 203565.17 , now my question is that why it showing this differnce
if we have sale that particular item , then sum of g/l entry shlould be
zero. (i think so)

regards,
Shailesh

Example 1: Fixed Assets service life is for ten years but in this case you are selling the assets after three year depreciation. Selling the asset below the current book value… So loss on sale of assets entry will created.

Example 2: Fixed Assets service life is for ten years but in this case you are selling the assets after three year depreciation. Selling the asset above the current book value… So profit on sale of assets entry will created.

Hope this will help you…

Loss on Sale of Assets Profit on Sale of Assets
Acq Cost 598,860.00 598,860.00
Dep 215,294.83 215,294.83
Book Value 383,565.17 383,565.17
Sold Value 90,000.00 400,000.00
Gain/Loss (293,565.17) 16,434.83