Selling an asset

When you sell an asset, MYOB Assets Live:

• calculates the depreciation at the disposal date and updates any changes.

• debits the realisation account with the original cost of the asset.

• credits the asset control group with the original cost of the asset.

• debits the accumulated depreciation account by the total depreciation calculated for the asset.

• credits the realisation account with the total depreciation calculated for the asset.

• calculates the profit / loss on the sale and credits / debits the profit or loss on sale accounts as appropriate.

• debits or credits the realisation account with the profit or loss on sale.

• calculates the capital gain taxable (Australia) and non-taxable amounts and credits the appropriate accounts.

• debits the realisation account with the gross capital gain.

• the closing written down value for the asset at the end of the year is 0.00 (except, in Australia, possibly for small business pool assets).

The disposal date of an asset sold under contract is taken to be the date on the legal binding contract. In circumstances where no legal contract is present, the disposal date is taken to be the date in which the asset changes ownership. When the asset is destroyed or lost, the date of disposal is the date when first compensation is received; or if there is no compensation, the disposal date is the date on which the asset was first discovered lost or destroyed.

(Australia) On selling an asset, you can select whether capital gains tax (CGT) is calculated for the sold asset. Capital gains tax can be calculated on a sold asset if:

• the acquisition date of the asset is greater than or equal to 20 September 1985.

• the private use amount of the asset is greater than 0% or the accumulated private use amount is greater than 0%.