Journal entry for sale of fa

we can pass

Loan Dr 

to Fixed Asset

OR       Party Dr

             To Fixed Asset

Loan Dr

To Party

Entry of Loan for Machinery would be:-

Machinery A/c-----------------Dr.

             To Bank/Cash

Bank A/c------------------------Dr.

            To Loan 

OR 

Machinery A/c-------------------Dr 

               To Loan

At the Time of Sale of Machine at your case Just Reverse the Entry:-

Loan A/c---------------------------Dr.

         To Machinery

Loan a/c dr

   To party 

Party dr

     Machine a/c

Depreciation reserved dr

   Machine A/c

1.       Bank Dr.

                    To JCB Machine

2.       Loan a/c Dr.

                    To Bank 

FIRST ENTRY IS WRONG, SINCE CHEQUE IS DIRECTLY DEPOSITED INTO LOAN ACCOUNT. SINCE FIRST ENTRY IS WRONG, IT AFFFECTS ON SECOND ENTRY ALSO.

Dear Member following entry should be passed for sale of Machinery

Bank A/c           Dr.

    To Machinery A/c

Loan A/c        Dr. 

     To Bank A/c