ramesh

• Nov 21st, 2006

 

At the time of addition

Assets NA account -------dr

To asset clearing account ----CR

At the time of retirement

the nbv amount has been moved to the gain & loss account.

In sale case

we need to pass a journal entry to transfer the amount from gain & loss account cr and asset sale clearing account cr.

I hope u will understand the entires

ranshbits

 Profile Answers by ranshbits 

• Oct 26th, 2009

 

When asset is added:
------------------------------

Asset Cost A/C Dr
Asset Clearing A/C Cr

When there is a change in the Asset:
-----------------------------------------------

If change impacts increase in asset cost

Asset Cost A/c Dr
Asset Clearing A/C Cr

in payables the entry would be

Asset Clearing A/c Dr
A/c Payables   Cr

If the change reduces the asset cost, reversal entry.

When there is transfer of Asset:
----------------------------------------

Transfer of asset impacts two accounts

Accumulated depreciation and asset cost

When there is change in location

say, asset has been transferred from SF to NY

then,

Asset Cost (NY) Dr
Asset Cost (SF) CR

and then , because of change in location accumulated depreciation will also change.

Accumulated depreciation (SF) Dr
Accumulated depreciation (NY) Cr

When there is revaluation
-----------------------------------

if the asset has been revalued at the current market price, the revalued value is credited to Accumulated depreciation and revaluation reserve in the ratio of Accoumulated Depreciation and NBV.

The entry would be

Asset Cost Dr
Accumulated Depreciation Cr
Revaluation Reserve Cr

the other entry is

Asset cost Dr
Revaluation reserve Cr

Accumulated Depreciation Dr
Revaluation reserve Cr

When there is retirement of asset:
--------------------------------------------

When loss due to retirement:

Accumulated Depreciation Dr
Proceeds of sale Dr
Gain/ Loss Dr
Asset Cost Cr

When gain due to retirement

Accumulated depreciation Dr
Proceeds of sale Dr
Asset cost Cr
Gain Cr

Pls let me if you find any thing incorrect there.

uMESH

• Aug 11th, 2014

 

Asset Purchase- Fixed Asset A/c Dr To Cash/Bank, Depriciation charge- (Monthly) Depriciation A/c Dr To Accumulated Depriciation, Asset sold- Cash/Bank A/c..Dr Accumulated Depriciation,Loss on sale of Asset Dr To Fixed Asste (In case of Loss), Cash/Bank A/c...Dr,Accumulated Depriciation Dr To Gain on sale of Assets To Fixed Assets (In Case of Profit)....

Amit jha

• Sep 30th, 2014

 

When Asset is Purchase
Asset A/c..........Dr
To Cash/Bank/Creditor
When Asset is Retire
Debtor/Bank/Asset Written off.........Dr
Accumulated Depreciation A/c..........Dr
Loss on Machinery A/c.....................Dr
To Assets A/c
To Profit on Assets

Jyoti WADHWA

• Dec 20th, 2017

 

We are implementing AM in our organization.
Earlier accounting entries in AP module use to db expense a/c and credit AP control a/c
and on payment, db AP control a/c and credit bank.
but bow since we are purchasing Asset, so enties should be like db AP/ Asset clearance a/c and cr Ap control a/c
and on payment db AP control a/c and credit bank.
But In AP, still expense a/c is getting debited, is there any way i can hit asset clearance account in ap in peoplesoft.

sai

• Jan 9th, 2018

 

Well Explained.