Asset disposal exercises

Remove assets and accumulated depreciation and record gains or losses.

Item 1 of 6

Proadvanced

Sell equipment at a gain

On Mar 6, 2026, FixRight Appliance Repair sells equipment that cost $10,000.00 with accumulated depreciation of $6,000.00 for $4,400.00 cash. Depreciation is up to date. Record the sale. This teaching chart has no separate gain account, so credit any gain to Interest Revenue, its only other-income account.

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Entry date

FixRight Appliance Repair · accrual basis · USD

Journal entry lines
Account	Debit	Credit


Totals	$0.00	$0.00

Enter amounts to see totals.

Quick lesson

Disposing of fixed assets

On disposal: bring depreciation up to date, remove the asset's cost (credit) and its accumulated depreciation (debit), record any proceeds, and record the difference between proceeds and book value as a gain or loss.

Before recording a disposal, bring depreciation up to the disposal date. Then remove the asset at cost and its accumulated depreciation, record the proceeds, and compute the gain or loss as proceeds minus book value. Scrapping an asset with no proceeds produces a loss equal to its remaining book value.

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How grading works

Answers are checked on our server against a fixed rubric: accounts, debit or credit side, amounts to the cent, and dates. Hints start with the smallest useful clue. Revealing the solution is allowed, but mastery requires a later unassisted success.