What are the correct journal entries for the sale of a business per the closing statement and associated closing entries for capital assets? Asset disposal is the removal of a long-term asset from the company's accounting records.It is an important concept because capital assets. The journal entry to dispose of fixed assets affects several balance sheet accounts and one income statement account for the gain or loss from disposal. Record the sale amount of the asset. If you sold your asset, record the gain or loss from the sale.