Gain on sales of machinery would be recorded as what? Debit or Credit?
debit assets, credit cash or debt, however you paid for it
credit to the machinery account when sale done and debiting on purchase of machinery to the machinery account
Gain on sale of machinery is going to be a revenue account (hence credit to increase). The dollar amount of the gain would equal the difference between the book value of the machinery and the amount received for it. Debit 'Cash' for amount received, debit 'Accumulated Depreciation - Machinery' for the total amount that it has been depreciated, credit 'Machinery' for the original cost of it, and credit 'Gain on Sale of Machinery' for the amount that makes the journal entry be in balance.
