Sold asset for profit

Looking for help on a journal to be done on a sale of asset.Motor vehicle 16125.00 (0050)I have depreciated item (0051) of 14125.00 so item was worth 2000 but item got sold for 5000 could someone help out with the journal entry as i would need 3000 to be on credit side to level out the journal but under what nominal code would you still put it under 4200 sale of asset on both sides of the journal?thanks in advance

Hi @jhanks1170

The concept is generally the same for the sale of assets. Take a look at this thread that was created recently which looks at office equipment:

Note: I’m not an accountant, and always recommend seeking professional advice with things such as this to ensure they are correct

yes i know how it works just that it would look like this below

so is this correct ? im asking whether the two codes of 4200 should be the same or not?

The journal needs to put the net book value (£2000) as a debit to 4200. Then separately you would create a sales invoice for £5000 (plus or including VAT if you’re registered) also assigned to 4200 to represent the sale, and tag the money received in the normal way. Your profit and loss would then show a net £3000 credit on 4200, representing the profit you made on the sale (or £2166.66 if that £5000 was an inc VAT figure).


Many thanks Ian Roberts that was a great help ive done the journal now and sale invoice that was how I wanted to know.Could I ask another question as the guy is sole trader he made 3000 profit on asset he will need to declare this in self assessment but as he has brought new van for 18450 then do we take off 3000 off the value of this as to claim for capital allowances so only claim for 15450 or do i put on form the full amounts?Thank you very much for help

The HMRC position is but if you want specific advice on your situation you’ll have to ask an accountant (I’m not one and even if I were there are rules around giving financial advice to people who aren’t your clients).