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title: "Dispose of selected assets (Scrap/Sell)"
canonical: "https://kb.myframeworks.com.au/space/PROSTIXV48DOC/31102576/Dispose%20of%20selected%20assets%20(Scrap%2FSell)"
format: markdown
---
To dispose of selected asset/s, perform the following: 1. From the  ProStix Main Menu , select ' General Ledger ' then ' Asset Register ', then ' Asset Maintenance '. 2.  If required, select  the relevant company from the  'Select Company'  screen.  3.  From the 'Options' menu search for, then select the relevant asset. 4. S elect option ' Scrap/Sell '. 5.  U pdate the 'Sold/Scrapped Details'   fields, then select <F1> when complete. Refer to the 'Sold/Scrapped Details fields' collapsible link for an explanation of some of these options. 6. This information will be updated in the next run of the General Ledger update, subject to the date typed and the period being updated. 7. After running the next G/L interface for that month, these are the movements in the G/L (e.g. asset $10,000, sold for $8,000):   More information on G/L movements when an asset is sold The system assumes that when an asset is sold that you are going to receive a payment and thus it makes use of a sundry debtors clearing account. The sale price of the asset is debited to the account, and when you process the sundry cash receipt you must allocate the credit to the same G/L account thus setting the clearing account to zero. It may be that the payment is received before the sale is recorded in the asset register. The G/L interface program will post the following journals when it processes the sale of an asset at a profit: 1. Debit The sundry debtors clearing account with the purchase price of the asset  (GST exclusive). Credit The asset balance sheet account 2. Credit The profit and loss on sale account with the difference between the purchase price and the sale price. Debit The sundry debtors clearing account. 3. Debit The provision for depreciation account with the total depreciation over the life of the asset. Credit The profit and loss on sale account. 4. Debit The sundry debtors clearing account with the GST charged on sale. Credit The GST sales account 5. Write back any over depreciation that may have occurred. Debit Provision for depreciation. Credit The depreciation expense account.   Profit on Sale of an Asset G/L postings Example Purchase price 1,000 Depn 600 WDV 400 Sell Price 2,500   1. Purchase and Depreciate   2. Sold for 2500 + 250 GST   3. Receive Payment   Loss on Sale of an Asset G/L postings Example Purchase price 1,000 Depn 600 WDV 400 Sell Price 500   4. Purchase and Depreciate   5. Sold for 500 + 50 GST     6. Receive Payment