QB Issue Resolution:
It sounds like the business sold all its assets – but that the (now inactive) business/company still exists and still belongs to you.
If so then the sale is recorded in the company, based on the agreement with the buyer. Essentially you be creating a special invoice with the buyer as a customer. If separate prices were agreed and listed for specific assets or portions of the business then you should separate and show those details on the invoice. Creating the invoice can be difficult as you likely do not have ‘items’ to identify what you are sell. So first you probably need to create one or more ‘items’ to use for this entry. You can setup one ‘service’ type item called ‘business assets’ which points to an ‘other income’ gl account called ‘proceeds of asset sale’ Use this item on each line – and then manually add the correct description, quantity and price for each item on the sales agreement – include any sales tax coding as per the sales agreement. This records the revenue. Record the sales proceeds as a customer invoice receipt.
The next step is then to remove all sold assets from the balance sheet and record them as costs of the above revenue. For clarity I suggest creating 2 new special use gl accounts also other income type and place them immediately under the ‘proceed of sale’ account – call these ‘costs of assets sold’ and ‘AccDep-Assets sold’.
Now create a big journal entry that transfers all the assets from their balance sheet asset account into these 2 new accounts. Just transfer all the existing books values for now and let your tax preparer worry about depreciation adjustments and recapture later.
Typically there will be little or no cost associated with the goodwill you sold so hopefully you have a net positive ‘other income’ after this entry is complete
Resolution for Issue 'How/where do I record “Proceeds from sale of a business” on my books? We recently sold our restaurant. The money we received was for all equipment, furniture, supplies, flooring, goodwill – basically everything (not the building as we did not own that). We used the majority of the money we received to pay back outstanding loans and other bills – i understand the remaining money is taxed as Capital Gains. I’m just trying to figure out how to record this on our books. Thank you for any help you can provide :)' available: Yes (Solved).
Source: Intuit Community forum.
How/where do I record “Proceeds from sale of a business” on my books? We recently sold our restaurant. The money we received was for all equipment, furniture, supplies, flooring, goodwill – basically everything (not the building as we did not own that). We used the majority of the money we received to pay back outstanding loans and other bills – i understand the remaining money is taxed as Capital Gains. I’m just trying to figure out how to record this on our books. Thank you for any help you can provide :): this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.
Support for QBOQuickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!
Error Recovery for QBO [Canada]
E-Tech is the #1 Quickbooks data migration and Conversion service provider.
Additional Support Options: