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Asset Accounting GL Entries

Updated May 18, 2018

Dear Friends,

What are the GL Entries that occur in Asset Accounting?

Ex:  While Purchasing of asset,Selling of asset,Posting of depreciation, asset retirement,Scrappin g of asset,Transfer of asset


All the help will be greatly appreciated.

Regards

 


Comments

  • 06 Apr 2018 10:23 am akshata Helpful Answer

    purchase of asset

     

    Asset A/C (70) Dr

    To vendor (31) Cr

     

     

    Sales of asset

     

    Customer A/C (01) Dr

    Asset Sale A/C (50) Cr

     

    Acc. Dep. on Asset (70) Dr

    Asset A/C (75) Cr

     

    Asset Sale A/C (40) Dr

    Profit on Asset sale (50) Cr or Loss on Asset sale (40) Dr

     

    Deprecation posting

     

    Depreciation A/C Dr

    To Acc. Dep A/C Cr

     

    scraping of asset

     

    Asset A/C (75) Cr

    Acc. Dep A/C (70) Dr

    Loss due to Scrapping A/C (40) Dr

     

    transfer of an asset

     

    ABUMN----->Asset transfer within Company Code

     

    70 Asset debited in NEW Business Area

    75 Asset credited in OLD Business Area

     

    70 Acc. Dep debited in OLD Business Area

    75 Acc. Dep credited in NEW Business Area

     

    ABT1N------>InterCompany Asset Transfer

     

    OLD Company Code 75 OLD Business Area Asset A/C Credit

    OLD Company Code 70 OLD Business Area Acc. Dep Debit

    OLD Company Code 40 OLD Business Area Asset sale A/C Debit

    NEW Company Code 70 NEW Business Area Asset A/C Debit

    NEW Company Code 50 NEW Business Area InterCompanyClearing Credit

  • 12 May 2013 6:45 pm Guest
    Dear sir,

    what transation should i pass for letter of guaratnee or there is no trasnaction for letter of guarantee.
    your quick response in this regard will be highly appreciated

    Regards,
    Mohammad yaseen
  • 05 Apr 2017 11:07 pm Guest

    when asset purchase :

    Asset account Dr

    To Vendor account

    When asset Sale with customer with revenue:

    Accumulated dep A/C Dr

    Customer A/C Dr

    Loss on asset sale a/c Dr ( if loss comes while sale the asset)

    Asset sale a/c Dr

    To Profit on asset sale ( If profit come while sale the asset)

    To Asset sale

    To Asset

    When de-activate or scrapping

    Accumulated dep A/C Dr

    Loss on sale of asset A/C Dr 

    To Asset A/c

     


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