Disposal Journals

LN identifies data for journal creation each time you dispose of an asset in its default posting book. LN creates multiple journals, depending on the type of disposal:

• For all types of disposals, LN credits the asset account and debits the accumulated depreciation account.
• In sale, trade-in, casualty loss, or theft, LN records the difference between the net book value and the proceeds as gain or loss to the appropriate account.
• In a charitable contribution, LN records the difference between the net book value and the proceeds recorded by debiting the charitable contribution account with the amount of the proceeds and crediting the gain or debiting the loss to the appropriate account.
• In an abandonment, LN debits the scrap account for the net book value.
• In a sale, LN credits the asset account, debits accumulated depreciation, debits the proceeds account for the amount of sale, and either debits the loss account or credits the gain account.