Need help on selling a fixed asset

Hi Folks,

I'm fairly new to QB and haven't done my own bookkeeping in over 20 years, so please consider me a newbie.  I did search previous answers but couldn't find what I was looking for.  

My company owned an aircraft, which was sold in 2017.  I have not made any entries yet regarding the sale.  I have a fixed asset account and accumulated depreciation account that only have the aircraft value and depreciation in them.  I have been paid for the aircraft, and I have collected the GST from the sale, but again, I have not made any entries surrounding the sale of this fixed asset.

What I'm trying to figure out is how to show the sale in QB's, including the GST.  Should I create an invoice?  The sale was brokered, and I was paid by the brokerage firm.  Should the invoice be made out to the brokerage firm, or to the actual purchaser?  Other than a deposit of the money, what other transactions do I need to make to remove the aircraft from my books?  

By the way, there was a very small gain in asset value from the sale.  

Any help is very much appreciated.

Bruce

Answer

"I have not made any entries yet regarding the sale.  I have a fixed asset account and accumulated depreciation account that only have the aircraft value and depreciation in them."

Your Chartered accountant would help you know what the data will be to catch it up to the point of the sale, and then how to treat the sale.

"The sale was brokered, and I was paid by the brokerage firm."

Then it seems you have a Gross Sales and a commission or broker fee expense.

"Should the invoice be made out to the brokerage firm" <== you Paid them

"or to the actual purchaser?" <== you Sold to them

"Other than a deposit of the money, what other transactions do I need to make to remove the aircraft from my books?"

Your accountant will help you with this part. Basically, you are removing basis and recapturing depreciation.

"By the way, there was a very small gain in asset value from the sale."

You might not have this correct, since the accounting is not complete.


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