Journal Entry Plant Assets

Use this chart to help record the sale of long term plant assets:

Type of Transaction	Journal Entry Account Name	Debit	Credit
Adjusting Entry bringing accumulated depreciation up to date	Depreciation Expense Accumulated Depreciation- Asset	XXX	XXX
Journal Entry for recording the sale of asset with a gain	Accumulated Depreciation – Asset Cash Asset Gain on Disposal	XXX XXX	XXX XXX
Journal Entry for recording the sale of an asset with loss	Accumulated Depreciation Cash Loss on Disposal Asset	XXX XXX XXX	XXX
Record the retirement of an asset that is fully depreciated	Accumulated Depreciation – Asset Asset	XXX	XXX
Record the retirement of an asset that has not been fully depreciated	Accumulated Depreciation – Asset Loss on Disposal Asset	XXX XXX	XXX

 Remember to update all the accounts when selling long term plant assets!