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Sale of Fixed Assets | Non-Trading

If you are selling off your fixed assets (for example, furniture) which you do not trade in, you can record such sales in TallyPrime. 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 TallyPrime. 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).

  1. Open the sales voucher screen.
    1. Gateway of Tally > Vouchers > F8 (Sales).
      Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
    2. Press Ctrl+H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case).
  2. Specify the buyer details.
    1. Party A/c Name: Select Cash or Bank for cash sales. For credit sales, select the party name.
    2. Party Details: Provide the Buyer details.
      If you do not see the Party Details screen, press F12 (Configure), and set Provide Receipt, Order, and Import details to Yes.
      As always, you can press Ctrl+A to save and proceed.
  3. Provide the fixed asset details.
    1. Select the fixed assets ledger grouped under Sales Accounts.
    2. Enter the amount.
  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.
  5. Print the invoice.
    1. Press Alt+P (Print) > press Enter on Current.
    2. Press I (Preview) to check the invoice before printing, if needed.
    3. Press P (Print) to print.

This sale value will appear in the trading account and Sales Register.

Click here to see the possible F12 configurations for Sales Voucher.

Options

Descriptions

Provide Buyer details

Displays the Party Details screen, where you can enter the buyer’s name and mailing details.

Provide Dispatch, Order, and Export details

Displays the Party Details screen, where you can enter the Dispatch, Order, and Export details.

Use default Bill-wise details for Bill Allocation

Automatically allocate bill numbers as defined in the voucher type master, in ascending order.

Provide Additional Descriptions for Ledgers

Specify any additional description for the ledger during voucher entry.

Use Voucher No. as Bill Reference for Bill Allocation

Use the voucher number as the bill reference number during bill allocation.

Modify all fields during voucher entry

Modify all fields in the sales invoice.

Provide Reference No. and Date

View the fields to enter Reference No. and Date.

Skip the Date field during voucher creation

The date of last voucher entry appears and the cursor will skip this field.

Warn when Voucher No. exceeds 16 characters

Display a message when the voucher number is more than 16 characters.

Show Turnover from selected Party A/c

During voucher entry, display the turnover details from the customer/buyer.

Show Current Balance of Ledgers

Display the account balance of the party ledger.

Show final Ledger Balance

Display the account balance of the party ledger, by considering all the transactions made with the party.

Use default Bank Allocation

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 will remain blank.

 

You can record the same transaction in Journal Voucher as per your business needs. However, as it is a journal voucher, you cannot generate a sales invoice for this transaction. To view the journal voucher, click here.

  1. Gateway of Tally > Vouchers > F7 (Journal).
  2. Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
  3. Debit the party ledger.
  4. Credit the sales ledger.
  5. Accept the screen. As always, you can press Ctrl+A to save.

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

 

Record Journal Voucher to Adjust Profit or Loss on Sale of Fixed Assets

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.

In this section

 

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.

  1. Gateway of Tally > Vouchers > F7 (Journal).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
  2. Record the transaction.
    1. Debit the sales ledger and enter the sale value.
    2. Credit the fixed assets ledger and enter the asset value.
    3. Credit the indirect incomes ledger. The amount (profit) appears automatically.
  3. Accept the screen. As always, you can press Ctrl+A to save.

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

 

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…

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

  1. Gateway of Tally > Vouchers > F7 (Journal).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
  2. Record the transaction.
    1. Debit the sales ledger and enter the sale value.
    2. Debit the indirect expense ledger, and enter the amount (loss).
    3. Credit the fixed assets ledger. The asset value appears automatically.
  3. Accept the screen. As always, you can press Ctrl+A to save.

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

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