Sale of Fixed Assets | Tally.ERP 9

If you are selling off your fixed assets (for example, furniture) which you do not trade in, you can record such sales in Tally.ERP 9. You can also adjust the profit or loss arising out of such sale using a journal voucher.

Record Sale of Fixed Assets

When you are selling the fixed assets, you can record a sales transaction in Tally.ERP 9. See more...

For example, the fixed asset was purchased for 5,00,000, and the depreciation was accounted as 4,60,000. The value of the fixed asset was 40,000. It was then sold for 50,000 (at a profit of 10,000).

a. Party A/c Name : Select Cash or Bank for cash sales. For credit sales, select the party name.

If you do not see the Party Details screen, press F12 (Configure), and set Enable supplementary details to Yes .

4. Provide Narration , if needed, and accept the screen. As always, you can press Ctrl+A to save.

What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.

Options	Descriptions
Enable supplementary details	Invokes the Party Details screen, where you can enter Despatch , Order , and Buyer details.
Allow separate buyer and consignee names	Use this in case you need to deliver the goods to a location different from the buyer's address. This is applicable in case of consignment business.
Use defaults for bill allocation	Automatically allocate bill numbers as defined in the voucher type master, in ascending order.
Use voucher no. as bill ref. no. for bill allocations	Use the voucher number as the bill reference number during bill allocation.
Provide additional description for ledger name	Specify any additional description for the ledger during voucher entry.
Warn if voucher number exceeds 16 characters	Display a message when the voucher number is more than 16 characters.
Use default values for bank details	Use Bank Allocations with default allocations in which the Transaction type is Cheque and the voucher date is the Instrument Date. The Cheque Range and Cheque Number remain blank.
Show turnover achieved with customers	During voucher entry, display the turnover details from the customer/buyer.
Allow modification of all fields during entry	Modify all fields in the sales invoice.
Warn on negative stock balance	When there is insufficient stock during sales entry, a warning message of negative stock with quantity details appears.

Record sale of fixed assets in journal voucher

1. Gateway of Tally > Accounting Vouchers > F7 (Journal).

2. Debit the party ledger.

3. Credit the sales ledger.

4. Accept the screen. As always, you can press Ctrl+A to save.

The values of such transactions will appear in the relevant reports.

Adjust Profit or Loss on Sale of Fixed Assets | Record Journal Vouchers

After recording the sale of fixed assets, you can transfer the amount from sales ledger to fixed assets ledger and account for the profit or loss.

Account for profit on sale of fixed assets

You can account for the profit made on sale of fixed assets using income ledger. See more...

For example, the value of the fixed asset after depreciation is 40,000. You have sold it for 50,000. You can transfer 40,000 to fixed assets account and 10,000 to income account.

c. Credit the indirect incomes ledger. The amount (profit) appears automatically.

Account for loss on sale of fixed assets

You can account for the amount of loss incurred on sale of fixed assets using expense ledger. See more...

Sale of Fixed Assets | Non-Trading

Record Sale of Fixed Assets

Adjust Profit or Loss on Sale of Fixed Assets | Record Journal Vouchers

Account for profit on sale of fixed assets

Account for loss on sale of fixed assets