How to Record the Purchase or Sale of an Asset

To record the purchase of an asset, click menu File > New > Money Paid Out. The Money Paid Out window will be shown:

Asset Purchase

Enter the same details as for an expense, except the 'Allocate to Account' should be an asset rather than an expense account.

To record the sale of an asset, click menu File > New > Money Received. The Money Received window will be shown:

Asset Sale

Enter the same details as for a sale, except the 'From Account' should be an asset rather than an income account.

Recording a Profit or Loss on the Sale

When you sell an asset, you will likely have made a profit or loss on the sale. In the above example, the computer was purchased for £868.09 and sold for £272.34 (the VAT-exclusive amounts are used because the business is registered for VAT). The business therefore made a loss of £595.75. To record this loss, click File > New > General Transaction:

Loss on Sale

To record a loss, the From Account should be the asset account and the To Account should be 'Depreciation and Loss on Sale'. To record a profit, the From Account should be 'Depreciation and Loss on Sale' and the To Account should be the asset account.