I am a freelancer working from home and i have started to maintain my personal accounts in Manager since a month. I am not a professional in Accounting but, you can say im just a novice in this area of accounting. I’m stuck in posting an entry related to my Fixed Asset. I need to know the correct method to enter the below scenario in Manager Software.
Now, i’m having few old equipments like computer, laptop, printer and electronic components with me which are all little outdated. I’m planning to dispose it for whatever price i’m getting for it reasonably. I don’t remember the price i bought those assets at but now just to make an entry i’m ok with taking it with a reasonable value just to show in the books of accounts.
The Scenario Is:
I sold a Desktop PC to my ABC Customer for INR 3000/-. I have followed the below procedure after referring a lot of articles published in this forum on this topic. I followed the below steps:
Created an Account named “Computer Equipments” (as Control Account) under Fixed Assets in COA
Created “Desktop PC” under Fixed Assets from the main screen under the Control Account "Computer Equipments"
Under “Settings” -> Starting Balances -> Set Date -> i’ve updated date as 01/APR/2018
Under “Computer Equipments” -> blue link on debit side -> Edit button next to "Desktop PC"
Purchase Cost @ INR 8000/- (Roughly) -> then Update
Under “Fixed assets, accumulated depreciation” -> blue link on debit side -> Edit button next to “Desktop PC” -> Accumulated depreciation @ INR 6000/- (Roughly) -> then Update
Now, under Balance Sheet,
"Starting balance equity" is showing value as INR 2000/-
"Computer Equiptments" is showing value as INR 8000/-
"Fixed assets, accumulated depreciation" is showing value as INR -6000/-
After posting a Cash Receipt entry for the asset assuming it is sold at INR 3000/- to ABC Customer:
This is the Balance Sheet Summary as below POST Cash Receipt Entry:
Now under Fixed Assets -> “Edit” button next to “Desktop PC” -> Selecting “Disposed fixed asset” -> Entering the Receipt creation date -> then Update.
Here is the Summary Screen after Disposal Of Fixed Asset.
Here this “STARTING BALANCE EQUITY” is not getting NIL.
What step am i missing here. Please suggest the proper method i need to follow for such a scenario.
Retained Earnings and Cash on hand is showing correct value.
Instead of “Fixed assets - loss on disposal” with (-) negative value in “Expenses”, it could have been posted as “Fixed assets - profit on disposal” under “Income” head.
"STARTING BALANCE EQUITY" should have become NIL but not happening.
Kindly guide me if i am missing any step or do i have to post any additional entries to nullify the starting Balance Equity for the selected Fixed Assets.
A video clip or a detailed step with screenshots on the same would be appreciated as i have been struggling to solve/understand how to tackle this scenario.
Thanks a lot in Advance