A Gain on Sale Journal Entry is a bookkeeping entry used to record the profit from the sale of an asset. This type of journal entry is typically made after an asset has been sold for more than its carrying amount, resulting in a realized gain for the business. For example, if you sell off an old piece of equipment that you originally purchased at a cost of $100 but now receives $150, you would make a Gain on Sale Journal Entry noting the $50 difference as a profit. By accurately tracking these types of gains, businesses can ensure they’re properly accounting for any income generated from the sale of assets.