Scrapping an Asset
When an asset is no longer usable, it is scrapped.
You can scrap an asset anytime using the "Scrap Asset" button in the Asset record. You will be asked for confirmation, click on Yes and the asset will be scrapped. (Make sure that the value of the asset has been set to zero from the Asset Value Adjustment menu, otherwise the system will not allow to scrap the asset. This is in the case of assets which are not fully depreciated but still need to be scrapped due to some unforseen circumstances.)
The "Gain/Loss Account on Asset Disposal" account mentioned in the Company is debited by the Current Value (After Depreciation) of the asset.
A Journal Entry will be created if you scrap an asset:
After scrapping, you can also restore the asset using "Restore Asset" button from the asset master.