It is simple. Here it is:
Dr - Asset Disposal Account
Cr- Asset Account
(Being transfer of cost of the asset to disposal a/c)
Dr - Provision for Depreciation
Cr - Asset Disposal Account
(Transfer of accumulated depreciation to Disposal a/c)
Dr - Cash
Cr - Asset Disposal Account
(Being sale proceeds)
Now the balance in the disposal account will represent either profit (if credit balance) or loss (if debit balance).
