Why Loss Account Doesn’t Appear When Scrapping an Asset

Guidelines on why the loss account does not appear when scrapping an asset and how to handle it.

Answer:

If no account appears in the loss account when scrapping an asset, this is because the account was not added correctly in the chart of accounts.

To solve the problem:

1. Make sure the account is added in the chart of accounts.
2. The account should be under the Non-Operating Income category.
3. The account type should be Asset Sale Gains/Losses.

   

   

Additional Notes:

• After adding the account in the chart of accounts, make sure to select it when scrapping the asset.