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How do I register a sale of my fixed assets?

Rutger Bosch avatar
Written by Rutger Bosch
Updated over a month ago

When fixed assets, such as a company car, are sold, several accounting entries need to be made.

Selling the Asset:

The invoice is created through the sales invoices based on the agreed selling price.
In most cases, this is a VAT-taxable transaction.

The book value of the asset must be reduced to zero.

Recording the Sale of the Asset

Adding General Ledger Accounts

To properly record the sale, three general ledger accounts need to be created.

To add the general ledger accounts, follow the steps below:

  1. Navigate to Settings in the left-hand menu;

  2. Choose General ledgers and click New;

  3. Create the following three general ledger accounts:

    1. General ledger 1:

      1. Number: 2100;

      2. Description: Herinvesteringsreserve;

      3. Type: Balance;

      4. Account type: Normal account;

    2. General ledger 2:

      1. Number: 5900;

      2. Description: Kostprijs omzet;

      3. Type: Costs;

      4. Account type: Expenses/purchase/revenue account;

    3. General ledger 3:

      1. Number: 5950;

      2. Description: Dotatie herinvestering;

      3. Type: Costs;

      4. Account type: Expenses/purchase/revenue account;

Adding Journal Entries

After creating the invoice, additional journal entries must be made.

In the following example, we assume:

  • Purchase price: €60,000

  • Depreciation: €48,000

Journal Entry steps:

To add the journal, follow the steps below:

  1. Navigate to Advanced in the left-hand menu;

  2. Choose 40. Memoriaal and click New;

  3. Create the following booking:

    1. Line 1:

      1. Category: Use the balance sheet account of the asset;

      2. Description: Free text;

      3. Credit: €60.000,-

    2. Line 2:

      1. Category: Use the depreciation balance sheet account of the asset;

      2. Description: Free text;

      3. Debit: €48.000,-;

    3. Line 3:

      1. Category: 5900;

      2. Description: Free text;

      3. If there is a profit:

        1. Debit: The difference between line 1 and line 2;

      4. If there is a loss:

        1. Credit: The difference between line 1 and line 2;

    4. Click Save to add the booking.

Recording the Reinvestment Reserve

If a book profit occurs (i.e., the selling price exceeds the book value) and you want to allocate it to the reinvestment reserve, this must be recorded in the accounting system.

For example:

  • Book value: €12,000

  • Selling price: €20,000

  • Book profit: €8,000

To register the book profit as reinvestment reserve, follow the steps below:

  1. Navigate to Advanced in the left-hand menu;

  2. Choose 40. Memoriaal and click New;

  3. Create the following booking:

    1. Line 1:

      1. Category: 5950;

      2. Description: Free text;

      3. Debit: Book profit amount (€8.000,- in this example);

    2. Line 2:

      1. Category: 2100;

      2. Description: Free text;

      3. Credit: Book profit amount (€8.000,- in this example);

  4. Click Save to add the booking

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