Partial disposal examples—Fixed Assets Management

Use these examples to understand how partial disposals affect asset balances and financial reporting for both depreciable and non-depreciable assets. The examples include formulas, sample calculations, updated depreciation schedules, and the resulting disposal journal entries.

Formulas

  • Depreciable cost = Asset cost − Salvage value

  • Total accumulated depreciation = Sum of all Posted and Historically posted entries

  • Remaining accumulated depreciation = Total accumulated depreciation − Sum of partial accumulated depreciation amounts from previous partial disposals

  • Partial accumulated depreciation = (Remaining accumulated depreciation ÷ (Asset cost − Sum of previous partial disposal amounts)) × Partial disposal amount

  • Partial remaining depreciation = Partial disposal amount − Partial accumulated depreciation

  • Gain or loss amount for partial disposal (depreciable asset) = Sales price − Partial remaining depreciation

  • Gain or loss amount for partial disposal (nondepreciable asset) = Sales price − Partial disposal amount

  • Total remaining depreciation = Depreciable cost − Total accumulated depreciation − Sum of partial remaining depreciation

Full disposal formulas after partial disposals:

  • Remaining asset cost = Asset cost − Sum of previous partial disposal amounts

  • Remaining accumulated depreciation = Total accumulated depreciation − Sum of partial accumulated depreciation amounts from previous partial disposals

  • Gain or loss amount (depreciable asset) = Sales price − (Remaining asset cost − Remaining accumulated depreciation)

  • Gain or loss amount (nondepreciable asset) = Sales price − Remaining asset cost

Depreciation schedule calculations

When you partially dispose of an asset, Fixed Assets Management recalculates any unposted depreciation entries. It follows the asset's original depreciation method, but uses the following values in the calculation:

  • Depreciable cost = The new total remaining depreciation

  • Useful life = The number of unposted periods

  • In-service date = The partial disposal date

Example: Depreciable asset

Scenario:

  • Asset cost: $10,000.00

  • Salvage value: $100.00

  • In-service date: December 30th, 2024

  • Depreciable cost: $9,900.00

  • Total accumulated depreciation: $825.00

  • Remaining depreciation: $9,075.00

  • Depreciation method: Straight line

Schedule:

Depreciation schedule
Period Scheduled posting date Depreciation amount ($) State
1 December 31st, 2024 412.50 Posted
2 January 31st, 2025 412.50 Posted
3 February 28th, 2025 412.50 Not posted
4 March 31st, 2025 412.50 Not posted
5 April 30th, 2025 412.50 Not posted
6 May 31st, 2025 412.50 Not posted
7 June 30th, 2025 412.50 Not posted
8 July 31st, 2025 412.50 Not posted
9 August 31st, 2025 412.50 Not posted
10 September 30th, 2025 412.50 Not posted
11 October 31st, 2025 412.50 Not posted
12 November 30th, 2025 412.50 Not posted
13 December 31st, 2025 412.50 Not posted
14 January 31st, 2026 412.50 Not posted
15 February 28th, 2026 412.50 Not posted
16 March 31st, 2026 412.50 Not posted
17 April 30th, 2026 412.50 Not posted
18 May 31st, 2026 412.50 Not posted
19 June 30th, 2026 412.50 Not posted
20 July 31st, 2026 412.50 Not posted
21 August 31st, 2026 412.50 Not posted
22 September 30th, 2026 412.50 Not posted
23 October 31st, 2026 412.50 Not posted
24 November 30th, 2026 412.50 Not posted
Depreciation schedules account for rounding by distributing small differences across entries to ensure that the total remaining depreciation matches the expected amount. This is why some entries differ from each other by 1 cent.

  • Partial disposal amount: $350.00

  • Sales price: $500.00

  • Partial accumulated depreciation: (825.00 ÷ 10,00.00) × 350.00 = $28.88

  • Partial remaining depreciation: 350.00 − 28.88 =  $321.12

  • Gain or loss amount: 500.00 − 321.12 = $178.88

  • Total remaining depreciation: 9,900.00 − 825.00 − 321.12 = $8,753.88

Journal entry:

Journal entry

GL account

Debit ($)

Credit ($)
Asset   350.00
Accumulated depreciation 28.88  
Disposal 500.00  
Gain or loss   178.88

Schedule after partial disposal:

Depreciation schedule
Period Scheduled posting date Depreciation amount ($) State
1 December 31st, 2024 412.50 Posted
2 January 31st, 2025 412.50 Posted
3 February 28th, 2025 397.90 Not posted
4 March 31st, 2025 397.90 Not posted
5 April 30th, 2025 397.90 Not posted
6 May 31st, 2025 397.90 Not posted
7 June 30th, 2025 397.90 Not posted
8 July 31st, 2025 397.90 Not posted
9 August 31st, 2025 397.90 Not posted
10 September 30th, 2025 397.90 Not posted
11 October 31st, 2025 397.90 Not posted
12 November 30th, 2025 397.90 Not posted
13 December 31st, 2025 397.90 Not posted
14 January 31st, 2026 397.90 Not posted
15 February 28th, 2026 397.90 Not posted
16 March 31st, 2026 397.90 Not posted
17 April 30th, 2026 397.91 Not posted
18 May 31st, 2026 397.91 Not posted
19 June 30th, 2026 397.91 Not posted
20 July 31st, 2026 397.91 Not posted
21 August 31st, 2026 397.91 Not posted
22 September 30th, 2026 397.91 Not posted
23 October 31st, 2026 397.91 Not posted
24 November 30th, 2026 397.91 Not posted

  • Partial disposal amount: $200.00

  • Sales price: $375.00

  • Remaining accumulated depreciation: 825.00 − 28.88 = $796.12

  • Partial accumulated depreciation: (796.12 ÷ (10,000.00 − 350.00)) × 200.00 = $16.50

  • Partial remaining depreciation:  200.00 − 16.50 = $183.50

  • Gain or loss amount:  375.00 − 183.50 = $191.50

  • Total remaining depreciation:  9,900.00 − 825.00 − (321.12 + 183.50) = $8,570.38

Journal entry:

Journal entry

GL account

Debit ($)

Credit ($)
Asset   200.00
Accumulated depreciation 16.50  
Disposal 375.00  
Gain or loss   191.50

Schedule after partial disposal:

Depreciation schedule
Period Scheduled posting date Depreciation amount ($) State
1 December 31st, 2024 412.50 Posted
2 January 31st, 2025 412.50 Posted
3 February 28th, 2025 389.56 Not posted
4 March 31st, 2025 389.56 Not posted
5 April 30th, 2025 389.56 Not posted
6 May 31st, 2025 389.56 Not posted
7 June 30th, 2025 389.56 Not posted
8 July 31st, 2025 389.56 Not posted
9 August 31st, 2025 389.56 Not posted
10 September 30th, 2025 389.56 Not posted
11 October 31st, 2025 389.56 Not posted
12 November 30th, 2025 389.56 Not posted
13 December 31st, 2025 389.56 Not posted
14 January 31st, 2026 389.56 Not posted
15 February 28th, 2026 389.56 Not posted
16 March 31st, 2026 389.56 Not posted
17 April 30th, 2026 389.56 Not posted
18 May 31st, 2026 389.56 Not posted
19 June 30th, 2026 389.57 Not posted
20 July 31st, 2026 389.57 Not posted
21 August 31st, 2026 389.57 Not posted
22 September 30th, 2026 389.57 Not posted
23 October 31st, 2026 389.57 Not posted
24 November 30th, 2026 389.57 Not posted

Depreciation was posted for February 2025 so the total accumulated depreciation is now $1,214.56.

  • Partial disposal amount: $89.00

  • Sales price: $75.00

  • Remaining accumulated depreciation: 1,214.56 − 28.88 − 16.50 = $1,169.18

  • Partial accumulated depreciation: (1,169.18 ÷ (10,000.00 − 350.00 − 200.00) ) × 89.00 = $11.01

  • Partial remaining depreciation: 89.00 − 11.01 = $77.99

  • Gain or loss amount: 75.00 − 77.99 = ($2.99)

  • Total remaining depreciation: 9,900.00 − 1,214.56 − (321.12 + 183.50 + 77.99) = $8,102.83

Journal entry:

Journal entry for a gain on sale

GL account

Debit ($)

Credit ($)
Asset   89.00
Accumulated depreciation 11.01  
Disposal 75.00  
Gain or loss 2.99  

Schedule after partial disposal:

Depreciation schedule
Period Scheduled posting date Depreciation amount ($) State
1 December 31st, 2024 412.50 Posted
2 January 31st, 2025 412.50 Posted
3 February 28th, 2025 389.56 Posted
4 March 31st, 2025 385.84 Not posted
5 April 30th, 2025 385.84 Not posted
6 May 31st, 2025 385.85 Not posted
7 June 30th, 2025 385.85 Not posted
8 July 31st, 2025 385.85 Not posted
9 August 31st, 2025 385.85 Not posted
10 September 30th, 2025 385.85 Not posted
11 October 31st, 2025 385.85 Not posted
12 November 30th, 2025 385.85 Not posted
13 December 31st, 2025 385.85 Not posted
14 January 31st, 2026 385.85 Not posted
15 February 28th, 2026 385.85 Not posted
16 March 31st, 2026 385.85 Not posted
17 April 30th, 2026 385.85 Not posted
18 May 31st, 2026 385.85 Not posted
19 June 30th, 2026 385.85 Not posted
20 July 31st, 2026 385.85 Not posted
21 August 31st, 2026 385.85 Not posted
22 September 30th, 2026 385.85 Not posted
23 October 31st, 2026 385.85 Not posted
24 November 30th, 2026 385.85 Not posted

  • Total previous partial disposals: 350.00 + 200.00 + 89.00 = $639.00

  • Remaining asset cost: 10,000.00 − 639.00 = $9,361.00

  • Total accumulated depreciation: $1,214.56

  • Previous partial accumulated depreciation:  28.88 + 16.50 + 11.01 = $56.39

  • Remaining accumulated depreciation: 1,214.56 − 56.39 = $1,158.17

  • Sales price: $8,000.00

  • Gain or loss amount: 8,000.00 − (9,361.00 − 1,158.17) = ($202.83)

Journal entry:

Journal entry

GL account

Debit ($)

Credit ($)
Asset   9,361.00
Accumulated depreciation 1,158.17  
Disposal 8,000.00  
Gain or loss 202.83  

Schedule after partial disposal:

Depreciation schedule
Period Scheduled posting date Depreciation amount ($) State
1 December 31st, 2024 412.50 Posted
2 January 31st, 2025 412.50 Posted
3 February 28th, 2025 389.56 Posted
4 March 31st, 2025 385.84 Canceled
5 April 30th, 2025 385.84 Canceled
6 May 31st, 2025 385.85 Canceled
7 June 30th, 2025 385.85 Canceled
8 July 31st, 2025 385.85 Canceled
9 August 31st, 2025 385.85 Canceled
10 September 30th, 2025 385.85 Canceled
11 October 31st, 2025 385.85 Canceled
12 November 30th, 2025 385.85 Canceled
13 December 31st, 2025 385.85 Canceled
14 January 31st, 2026 385.85 Canceled
15 February 28th, 2026 385.85 Canceled
16 March 31st, 2026 385.85 Canceled
17 April 30th, 2026 385.85 Canceled
18 May 31st, 2026 385.85 Canceled
19 June 30th, 2026 385.85 Canceled
20 July 31st, 2026 385.85 Canceled
21 August 31st, 2026 385.85 Canceled
22 September 30th, 2026 385.85 Canceled
23 October 31st, 2026 385.85 Canceled
24 November 30th, 2026 385.85 Canceled

Example: Non-depreciable asset

Scenario:

  • Asset cost: $10,000.00

  • Salvage value: $100.00

  • In-service date: December 30th, 2024

  • Partial disposal amount: $3,567.00

  • Sales price: $3,000.00

  • Gain or loss amount: 3,000.00 − 3,567.00 = ($567.00)

Journal entry:

Journal entry

GL account

Debit ($)

Credit ($)
Asset   3,567.00
Disposal 3,000.00  
Gain or loss 567.00  

  • Partial disposal amount: $3,000.00

  • Sales price: $9,000.00

  • Gain or loss amount: 9,000.00 − 3,000.00 = $6,000.00

Journal entry:

Journal entry

GL account

Debit ($)

Credit ($)
Asset   3,000.00
Disposal 9,000.00  
Gain or loss   6,000.00

  • Total previous partial disposals: 3,567.00 + 3,000.00 = $6,567.00

  • Remaining asset cost: 10,000.00 − 6,567.00 = $3,433.00

  • Sales price: $4,500.00

  • Gain or loss amount: 4,500.00 − 3,433.00 = $1,067.00

Journal entry:

Journal entry

GL account

Debit ($)

Credit ($)
Asset   3,433.00
Disposal 4,500.00  
Gain or loss   1,067.00

Example: Reversal

When a partial disposal is reversed, Fixed Assets Management creates a reversal journal entry that mirrors the original partial disposal journal entry. The debit and credit amounts are reversed to offset the accounting impact of the original partial disposal. The depreciation schedule is also restored to its state before the partial disposal.

Original partial disposal journal entry

GL account

Debit ($)

Credit ($)
Asset   89.00
Accumulated depreciation 11.01  
Disposal 75.00  
Gain or loss 2.99  
Reversal disposal journal entry

GL account

Debit ($)

Credit ($)
Asset 89.00  
Accumulated depreciation   11.01
Disposal   75.00
Gain or loss   2.99