The disposal form compares recorded proceeds with the asset's supported book value and displays Gain or Loss. Review the underlying cost, posted depreciation and proceeds source before selecting the account for that result.
When the calculation shows a gain, Gain on disposal account asks for an Other Income account. When it shows a loss, Loss on disposal account asks for an Other Expense account. Select the intended current-company account and wait for account mapping to load successfully.
If the result is unexpected, investigate the source values instead of selecting a convenient account to obscure the difference. Missing depreciation, wrong proceeds evidence or an unresolved correction can affect the amount being reviewed.
Prepare the disposal journal only after the date, source and mapping are correct. Review the resulting source-linked journal before its authorized posting, then check the asset's Disposal history. A mapped gain or loss is an accounting result of the reviewed disposal evidence and is not a separate cash transaction.
Was this article helpful?
Tell us whether this answered the question you came with.