You can record the relevant transactions for sale of fixed assets and view the details in GST reports and Balance Sheet .
On this page
● View details in Balance Sheet
● Journal entries for adjusting profit or loss on sale of fixed assets
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase > click I : Accounting Invoice .
Record purchase of fixed assets in accounting invoice with GST ledgers as shown:
Record the depreciation voucher before recording the sale of fixed assets.
Go to Gateway of Tally > Accounting Vouchers > F7: Journal .
1. Debit the depreciation ledger grouped under expenses, and enter the value of depreciation.
2. Credit the Fixed asset ledger.
3. Press Enter to save.
Go to Gateway of Tally > Accounting Vouchers > F8: Sales > click I : Accounting Invoice .
Ensure the ledger used for sale of fixed assets is grouped under Sales Accounts . Record sale of fixed asset in accounting invoice, by selecting the GST ledgers based on the party's Place of Supply .
This sale value will appear in your trading account and Sales Register . As the sale is of fixed asset, you need to transfer this amount to fixed asset ledger, to form part of the Balance Sheet .
Note: Sale of fixed asset can be recorded in journal voucher as shown below, but you cannot generate the sales invoice.
Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-1 .
If the fixed asset is sold to:
● Registered dealer, the details will appear under B2B Invoices.
● Unregistered dealer, the details will appear under B2C Invoices.
Balance sheet appears as shown:
Account for profit on sale of fixed asset
Transfer the profit to income ledger to reflect the actual value of fixed assets in Balance sheet.
Example: After charging depreciation on fixed assets, if the net value of the fixed assets is 4,000 and the sale value is 5,000, record a Journal voucher to transfer the profit as given below:
Debit: Sale of Fixed assets = 5,000
Credit: Fixed Assets = 4,000
Credit: Indirect Income = 1,000
Account for loss on sale of fixed asset
Transfer the loss to expense ledger to reflect the actual value of fixed assets in Balance sheet.
Example: After charging depreciation on fixed assets, if the net value of the fixed assets is 5,000 and the sale value is 4,000, record a Journal voucher to transfer the loss as given below:
Debit: Sale of Fixed assets = 4,000
Debit: Indirect Expenses = 1,000
Credit: Fixed Assets = 5,000
'Sale of Fixed Assets Under GST | Tally.ERP 9' has been shared with
