How do you find profit and loss in sell of any machine in depreciation?

To do this, you need to have a couple of figures Cost of the machine Accumulated depreciation Sell price Residual value (how much the machine would be worth after it's fully depreciated, if you are selling at this time) Imagine: Machine cost $10000 Accumulated Depreciation $4000 Sold for $15000 Step 1: Record sale of machine Dr Cash at bank $15 000 Cr Proceeds from sale of machine $15 000 (To record proceeds from sale of machine) Step 2: Record disposal of machine Dr Carrying Amount $6 000 Dr Accumulated depreciation $4 000 Cr Machine $10 000 (To recognise carrying amount as an expense, and a gain of $5 000 on sale of machine) As you can see, machine's carrying amount was $6 000 and you sold it for $15 000, you have made $9 000 gain Carrying amount = Cost of machine - Accumulated depr $10 000 - $4 000 $6 000.

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