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Kelvintronic's avatar
Kelvintronic
Contributing User
4 days ago

Creating a journal entry for a loss on the sale of a fixed asset

Hi,

 

I use Business Lite.

 

I have just sold my old work vehicle.

 

I have an account (journal) under fixed assets called Vehicles. The asset is recorded at $2500. I have just sold it for $1200.

 

I created an invoice for the buyer and set the category for the line item to Vehicles. So that side of the equation is sorted.

 

Quite a few online searches tell me I should create a journal entry for the loss but when I try to I get the error: An unbalanced transaction may not be recorded.

 

Another search tells me that the debit and credit columns must match - that seems a bit odd. Wouldn't that create a zero value transaction?

 

Can someone out there please explain how creating a journal entry works please?

 

Thanks

 

1 Reply

  • Princess_R's avatar
    Princess_R
    MYOB Moderator
    4 days ago

    Hi Kelvintronic,

     

    Thanks for checking in. Selling an asset for less than it's worth gets a bit messy with the paperwork. To make sure your books stay perfectly clean, it’s best to run this by an accountant. 

     

    The information you found online is generally correct. The error, “An unbalanced transaction may not be recorded", pops up because every journal entry needs the debits and credits to equal the exact same amount. I’ve included some helpful links below that you may find useful:

    Cheers,

    Princess

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