Disposal of fixed asset

The disposal of a fixed asset refers to the process of removing a long-term asset from the company's asset due to selling, scrapping, donating, or written off the asset.

When a fixed asset is disposed of, it has a general overview of the accounting treatment for the disposal of a fixed asset:

ACCOUNTING	OVERVIEW
Determine the book value	Book value is the original cost of the asset. If the asset has been fully depreciated, the book value may be zero.
Sales of asset	Record the cash received to identify gain or loss of disposal asset
Journal entries	Record the necessary journal entries to reflect the disposal by credit the asset account for its original cost, debit the accumulated depreciation account to eliminate its carrying value

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