What are the correct journal entries for the sale of a business per the closing statement and associated closing entries for capital assets? Fixed Assets: How to record the disposal of assets?The equipment sold is used. When we're talking about the gain or loss of the sale of an asset we need to be looking at net book value at the time of the sale. Start out with crediting the original purchase price. Credit improvements if you capitalized these. The journal entry to record the sale is: JournalPage 101. Date, Description, Post. Ref. Capital gain is generally a gain on sale of capital assets—that is, those assets not held for sale in the ordinary course of business.