How to record a sale of an asset account

I have a property set up in an asset account. I sold the property and need to know how to record the income so the asset account goes away.

Best Answer

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    Answer ✓
    That was the set of transactions that could be in the Asset account. The split transaction could also be a checking account entry. In that case the entry in the property account would be appearing as a straightforward $75,000 out. 

Answers

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    Broadly speaking, I would enter a transaction in the Asset Account to reflect sale value of the asset.  That can be a recursive transaction ( [Asset Account Name] as the Category) or a transaction that refers to desired income category (( Other Income:Taxable or similar). 

    The next transaction would be a transfer of that final cash value of the Asset to your checking account or wherever the money went.  That final transaction might also be in the form of split categories with other lines for commissions, taxes, etc.      
  • CandyW
    CandyW Member
    sorry, can you explain the transaction of depositing the cash received better?
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    The transactions in the Property Asset account might be like below.
    Prior valuation of 50,000
    Update Value to 75,000
    Transfer out 75,000 with 1,000 to property taxes, 2,000 to other miscellaneous expenses, and 72,000 to 'Myself' at my [Checking] account.



     
  • CandyW
    CandyW Member
    is this transaction recorded from the asset account or from the checking account where the cash was wired to?
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    Answer ✓
    That was the set of transactions that could be in the Asset account. The split transaction could also be a checking account entry. In that case the entry in the property account would be appearing as a straightforward $75,000 out.