Gain on Disposal of Assets - Revaluated Operating Expenses (769C)

On November 15th, 2007 your company sells a used fixed asset. You sell it at the agreed price of €1,000.00, plus a 20% VAT charge of €200.00. This makes total payment amount of €1,200.00.

Net book (carrying) value of fixed asset:       €969.00

Gain on disposal: €1,000 -€969 = €31

Again see follow-up for one way of how to close such posting. Enter issued invoice and post total disposal value (excluding VAT) to account for recoeding disposed assets (0490).

Use automatic posting of invoices issued to post the invoice.

Then manually post the reversed difference to actual carrying amount to the credit side of account for recording revaluated operating expenses. (For purpose of creating a cash flow statement it is wise that gain on disposal is posted to a separate subsidiary account of control account 769.)

It is best to add lines of posting to journal entry of the issued invoice. (Of course you could also enter them to the journal entry for posting disposal.)

Related topics:

• Disposal Value of Fixed Asset Greater Than Its Book Value
• Fixed Asset Excluding Carrying Amount

For a general description of functions see:

• Disposal of Fixed Asset