{"id":607,"date":"2021-12-03T13:55:26","date_gmt":"2021-12-03T13:55:26","guid":{"rendered":"https:\/\/seunkolade.com\/?p=607"},"modified":"2025-03-13T11:30:29","modified_gmt":"2025-03-13T11:30:29","slug":"disposal-of-fixed-assets-how-to-record-the-journal","status":"publish","type":"post","link":"https:\/\/seunkolade.com\/?p=607","title":{"rendered":"Disposal of Fixed Assets: How to Record the Journal Entry"},"content":{"rendered":"

$\"fixed$ <\/p>\n

When an asset is disposed of, the Fixed Assets account must be credited for the original cost of the fixed asset. You can learn more about items to be included in the original cost of a fixed asset in our article on what fixed asset accounting is. In this journal entry, the $21,000 cost of the equipment is capitalized as a fixed asset on the balance sheet. And this cost will be depreciated for four years period in order to match the equipment cost to the benefits it is expected to provide to our business over its useful life of four years.<\/p>\n<\/p>\n