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Sell or dispose of a fixed asset

Quick answerIn MAJA Books open the asset under Accountant → Fixed Assets, click Dispose, enter the Date of disposal, the Proceeds (AED), the VAT on the sale and the account the money went into, then click Post the disposal — MAJA removes the asset, charges any output VAT and posts the gain or loss on the net proceeds.
Where: MAJA Books → Accountant → Fixed Assets → asset → DisposeWho: Anyone whose role may edit fixed assets

Before you start

  • Run depreciation up to the disposal first. If periods are still due, MAJA says Run depreciation first.

Steps

  1. Click Accountant, then Fixed Assets, and click the asset.
  2. Click Dispose.
  3. Check the Cost, Depreciated so far and Net book value at the top.
  4. Enter the Date of disposal.
  5. Enter the Proceeds (AED) — 0 for a scrapped asset.
  6. Choose the VAT on the sale: Standard rated — 5%, Zero rated — 0%, Exempt or Outside the scope.
  7. Under The figure above is, choose before VAT (VAT added on top) or including VAT.
  8. If there are proceeds, choose where the money went under Received into.
  9. Read the journal preview, then click Post the disposal and confirm.

What MAJA does for you

  • Removes the asset's cost and accumulated depreciation.
  • Records output VAT on a standard-rated sale; it appears on your next VAT return.
  • Works out the gain or loss on the net proceeds (without VAT) against the net book value, and posts it.

Good to know

  • A disposal cannot be dated before the asset was acquired.
  • A disposal with output VAT is refused in a closed month or inside a filed VAT return; one with no VAT is refused only in a closed month.

Related guides

Run depreciationRegister a fixed assetCalculate your VAT return (FTA Form 201)
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Still stuck? In the app, tap the ? button at the top and choose Chat with MAJA support — the screen you are on goes with your message and the reply comes to the same place (within one working day). Or write to support@majabooks.com, or ask MAJA's assistant (the round button at the bottom right of MAJA Books).