How to manually write off a fixed asset in Sage Accounts


To manually write off a fixed asset, you need to post journal entries to show the value of the write off within the Nominal Ledger.


To post the manual write off journals

Open the Company menu > Tasks > Journals Entry

Sage 50 Accounts 2012 and below – click New Journal.

From the Nominal Ledger Journals window, enter a reference and date for the write off journal, then enter the relevant details on the Nominal Ledger Journals window.

Note: You should use the write off date.

For example, a fixed asset with an original value of £10,000, depreciation posted to date of £9,900 and a book value, to be written off, of £100, would be posted as follows:

N/C Name Details T/C Debit Credit
0050 Motor Vehicles Write Off Asset T9 10,000.00
0051 Motor Vehicle Depreciation Write Off Asset T9 9,900.00
8005 Fixed Asset Write Off Write Off Asset T9 100.00

Note: Nominal code 0050 is the Fixed Asset nominal code, nominal code 0051 is the accumulated depreciation expense nominal code, and nominal code 8005 is the Fixed Asset Write Off nominal code. If your nominal codes are different, replace these with the appropriate codes.

To post the Journal, click Save, then to return to the Nominal Ledger, click Close. The Nominal Ledger window appears.

You have now successfully written off the value of the asset from your accounts. The value of the asset on the balance sheet is now zero, and the net book value of the asset appears in the Fixed Asset Write Off nominal code as an expense. If you have created a Fixed Asset Record for this asset you need to manually remove it from the Fixed Assets Register.

Note: The Fixed Assets Register is only available in Sage 50 Accounts Plus and Sage 50 Accounts Professional.

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