[Debit] Cash / bank xxxx [Debit] Loss on sale of asset (if any) xxxx [Debit] accumulated depreciation xxxx [Credit] Asset xxxx [Credit]Profit on sale of asset (if any) xxxx
Asset
Cash/New Machinery (debit) Accumulated Depreciation - Old machinery (debit) Loss on Sale of Asset (debit) Old Machinery (credit) Cash (if money paid for new machinery in exchange) (credit)
an asset
[Debit] Loss on sale of equipment xxxx [Credit] Asset account xxxx
Credit balance records a decrease in fixed assets like depreciation or loss of asset or sale of asset etc.
There are many transactions that do this. If you receive a payment on account from a customer, you increase Cash and decrease Accounts Receiveable. If you pay for raw materials or merchandise with cash, you increase Inventory and decrease Cash. You can also increase Fixed Assets and decrease Cash if you buy an asset with cash. Moving product from Raw Materials to Finished Goods Inventory is another example. Moving excess cash to an investment account does the same thing. When you make a sale, you decrease Inventory and increase Accounts Receivable.
[Debit] Cash / bank xxxx [Debit] Loss on sale of asset (if any) xxxx [Debit] accumulated depreciation xxxx [Credit] Asset xxxx [Credit]Profit on sale of asset (if any) xxxx
Asset
if you have a asset and you sale it and then money which you get pay as a liability so decreas in asset and decreas in liability occurs.
Cash/New Machinery (debit) Accumulated Depreciation - Old machinery (debit) Loss on Sale of Asset (debit) Old Machinery (credit) Cash (if money paid for new machinery in exchange) (credit)
an asset
[Debit] Loss on sale of equipment xxxx [Credit] Asset account xxxx
liabilities will increase
[Debit] Accululated Depreciation xxxx [Debit] Loss on disposal of asset xxxx [Credit] Asset account xxxx Entry 2 [debit] Profit and loss account xxxx [Credit] Loss on disposal of asset xxxx
The recording of a profitable transaction will increase an asset and increase owners equity such as the sale of a product: Either Cash or Accounts Receivable would increase; and Current Profit increases (which is included in owners equity).
[Debit] Cash / bank xxxx [Credit] Sale of donated asset xxxx