Sale of Fixed Assets in TallyPrime: 5 Steps + Easy Example

1. Understanding Fixed Asset Sales in TallyPrime

When a fixed asset is sold, it’s essential to record the sale and adjust the related accounts.

This involves recognizing the sale proceeds, calculating any gain or loss on the sale, and removing the asset from your books.

2. Steps to Record Sale of Fixed Assets in TallyPrime:

1. Create a Sales Invoice:

Go to Gateway of Tally > Vouchers > Press F8 (Sales).

2. Enter Party Details:

Enter the buyer’s account name.

3. Add the Fixed Asset:

• In the “Item” field, select the fixed asset.
• Enter the quantity (usually 1) and the selling price.

4. Calculate Depreciation:

• Ensure that the accumulated depreciation for the fixed asset is up-to-date.
• The system will automatically calculate the net book value (original cost – accumulated depreciation).

5. Record the Sale:

Save the sales invoice.

3. Example to Record Sale of Fixed Assets in TallyPrime:

Let’s say you’re selling a machine that was purchased for Rs. 10,000 and has accumulated depreciation of Rs. 2,000. You’re selling it for Rs. 8,000.

1. Create a Sales Invoice:

• Go to Gateway of Tally > Vouchers > Press F8 (Sales).
• Enter the buyer’s details.
• Add the machine with a quantity of 1 and a rate of Rs. 8,000.

2. Save the Invoice:

• TallyPrime will automatically calculate the net book value (Rs. 10,000 – Rs. 2,000 = Rs. 8,000).
• The sale will be recorded, and the fixed asset will be removed from your books.

4. Key Points:

• Gain or Loss: If the selling price is higher than the net book value, a profit is recognized. If it’s lower, a loss is recognized.
• Tax Implications: Consider any applicable taxes on the sale of the fixed asset.
• Inventory Valuation: If the fixed asset is part of your inventory, ensure that the inventory records are updated.
• Depreciation: Verify that the accumulated depreciation for the fixed asset is accurate before recording the sale.

By following these steps and considering the specific details of your fixed asset sale, you can accurately record the transaction in TallyPrime and maintain accurate financial records.