Finance
4545 Points
Joined September 2020
If asset is sold for100 with dismantling liability of 10 included in it + gain 10 included + 10 tax additionally paid over the sale.
Dr. Bank 100
Dr. Dismantling liability 10
Cr. asset 100
Cr. Gain 10
This would be the normal sale entry. So you must have posted it like
Dr. Bank 100
To Sale 100.
so reverse this entry by reducing opening Retained earning by 100 and make adjustments for tax as per the provisions.
Dr. Retained earnings
Cr. Bank
Then post the first entries. This is complex and make disclosures.