Sale of business equipment

StaciWied

How would I record the money I get from the sale of business equipment. I am planning to sell a printer and some other items that I no longer use in my business. Do I do a misc. dummy invoice and record it that way? Or is there some JE I can manually make?

Mikeg

@StaciWied,
You should create a journal entry and categorize the receipt.
First, create an account either Income or Operating expense. Go to Accounting/Chart of Accounts. I would call it Gain/Loss on Disposition of Assets
Next, categorize the transaction that was the deposit to the account you created.
Lastly, remove the asset and associated accumulated depreciation through a journal entry. The entry would be Debit accumulated Depreciation and credit Equipment. The balancing will either be a debit or credit which should go to the Gain/Loss on Disposition of Assets. Here's an example:
I own computer equipment and printers which I decide to sell. I receive 1000 for them. The computers cost me 3000 and the printer 1000. I had taken depreciation of 4000.
Transaction journal would have a 1000 deposit which I categorize to Gain/loss on Disposition of assets. Next I would do the journal entry dated on sale date. Debit Accumulated Depreciation 4000 and Credit Computer Equipment 4000. Since the the amounts are the same the entry balances. Summary
Computer Equipment was decreased by 4000 (3000+1000)
Accumulated Depreciation was decreased by 4000 (What I deducted on my prior tax return)
My income went up by 1000 because of the sale and I had no cost left on the assets.
Lets change the accumulated from 4000 to 2000
Debit Accumulated 2000
Debit Gain/Loss 2000
Credit Computer equipment 4000.
Now I have a loss of 1000 on my income statement because
I received 1000 (a credit) but had a leftover cost of 2000 (a debit) on my books. (4000-2000)