Part Disposals

Part Disposals

The Fixed Asset Register does not hold a quantity balance for each asset.

Example

Suppose you have an asset called “6 chairs” and you wish to sell 2 of them. 

Create a new asset called “2 chairs”. Edit the name of the old asset from “6 chairs” to “4 chairs”.

In the Fixed Asset Register, enter an Adjustment on the old asset of 1/3 of the cost and depreciation, dated on the first day of the year. The balances on this entry will both be negative.

Enter an Adjustment on the new asset with the same cost, depreciation and date, but this time with positive balances. This transfers the cost and depreciation of 2 chairs to the new asset without any effect on the nominal ledger.

Now sell the new asset in the usual way, starting from Accounts Production.

This procedure does not affect the balances in the previous year.

If a Fixed Asset Register report is run in the previous year then the description of the asset appears as "4 chairs", even though 6 chairs were held at that time