Fixed Asset Disposal is an accounting transaction that records the removal of an asset from a company’s balance sheet. This may occur when an asset is sold, exchanged, disposed of as scrap, or otherwise removed from service and no longer used by the business. When recording the disposal of a fixed asset, the journal entry should include a debit to the gain or loss on asset disposal account, and a credit to the related asset account, depending on the proceeds from the disposal. Depending on the situation, other accounts such as accumulated depreciation may also be involved in the Fixed Asset Disposal Journal Entry.