Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Capital Assets
Sale, Disposal or Interagency transfer of Capital Assets
Recording Disposal of Capital Assets
A disposal of capital assets occurs when a fully depreciated asset is no longer in service and no monetary value was received. If the asset is not fully depreciated or if monetary value was received, it must be treated as a sale of the asset. To book the disposal of assets, use the following entries.
Business-Type Activities (Fund Type 05) and
Component Units (Fund Type 15)
| Seq No |
Batch Type |
Doc Type |
Eff Date |
Fin Agy |
TC |
AY |
PCA |
COBJ |
Amount |
R |
Fund |
Input GL |
| To Reduce the Accumulated Depreciation of the Asset Being Disposed |
| (1) |
5 |
U |
0832CY |
XXX |
644 |
CY |
99999 |
N/A |
$ XX.XX |
|
XXXX |
XXXX* |
| To Reduce the Asset Being Disposed |
| (2) |
5 |
U |
0832CY |
XXX |
645 |
CY |
99999 |
N/A |
$ XX.XX |
|
XXXX |
XXXX |
Accounting effect of above entries:
|
|
Debit |
Credit |
| (1) |
To Reduce the Accumulated Depreciation of the Asset Being Disposed |
|
|
| |
XXXX* General Ledger Account for Asset Depreciation |
$ XX.XX |
|
| |
9999 System Clearing |
|
$ XX.XX |
| (2) |
To Reduce the Asset Being Disposed |
|
|
| |
9999 System Clearing |
$ XX.XX |
|
| |
XXXX General Ledger Account for Asset |
|
$ XX.XX |
Governmental Activities – Basis Conversion (Fund Type 11)
| Seq No |
Batch Type |
Doc Type |
Eff Date |
Fin Agy |
TC |
AY |
PCA |
COBJ |
Amount |
R |
Fund |
Input GL |
| To Reduce the Accumulated Depreciation of the Asset Being Disposed |
| (1) |
5 |
U |
0832CY |
XXX |
534 |
CY |
99999 |
N/A |
$ XX.XX |
|
XXXX |
XXXX* |
| To Reduce the Asset Being Disposed |
| (2) |
5 |
U |
0832CY |
XXX |
535 |
CY |
99999 |
N/A |
$ XX.XX |
|
XXXX |
XXXX |
Accounting effect of above entries:
|
|
Debit |
Credit |
| (1) |
To Reduce the Accumulated Depreciation of the Asset Being Disposed |
|
|
| |
XXXX* General Ledger Account for Asset Depreciation |
$ XX.XX |
|
| |
9992 BC System Clearing |
|
$ XX.XX |
| (2) |
To Reduce the Asset Being Disposed |
|
|
| |
9992 BC System Clearing |
$ XX.XX |
|
| |
XXXX General Ledger Account for Asset |
|
$ XX.XX |
*For valid general ledger accounts, see Recording Depreciation of Capital Assets.
