Dispose of a capital asset

When you sell an asset, the money you receive is not sales income - it is a disposal, and Kontala records it differently.

Record the disposal

Disposals are recorded from your bank account:

1. Go to Banking, open the account, and click the money-in transaction for the sale.
2. Choose the Type Disposal of Capital Asset and pick the asset you sold.
3. Set the VAT rate if VAT applies, then choose Add.

See Explain asset purchases and disposals for the full steps.

What happens to the figures

Kontala takes the asset off your books at its original cost, clears the depreciation charged so far, and compares the sale price with the asset's remaining Net book value:

• Sell for more than the book value and the difference is a gain.
• Sell for less and it is a loss.

The difference posts automatically to the Loss/Gain on Disposal of Capital Asset account, which appears on your Profit and loss once it has activity.

After the disposal

On the asset register, the asset moves to the Disposed capital assets state, and its page shows the Disposed on date and a disposal event on the Asset timeline. Depreciation stops - a disposed asset posts no further charges.

If you remove the disposal explanation from Banking, the asset returns to current and carries on as before.