How to remove sold assets from the balance sheet report on QBO?
First, if the balance isn’t zero, the asset will need to show.
So, you must change the asset balance to zero, in order for it to appear on the balance sheet.
If the asset is sold, in order to relieve the asset and the accumulated depreciation, a journal entry has to be done.
Other issues to keep in mind:
1. You have to account for gains or losses as well, in case the sale has a gain and loss.
2. The asset won’t be affected if you zero out a loan. I meant that when selling an asset that has a loan, if you zero the loan or not has no effect on selling the asset.
What you should do in that case is to clear out the asset and the assets accumulated depreciation. Then you can determine the gain or loss for that sale.
So the money received is booked against the asset and you have a gain or loss according to its adjusted basis.
Deal with the loan when you’ve finished this.
3. Paying off the loan might have been done as a separate transaction (from the bank account, not the sale). If this is the case then you’re facing a very complicated situation.
Set up another income account and another expense account, to put the balance of the GJE when removing the Fixed asset.