When a company sells a non-inventory asset, such as buildings, land, furniture, or machinery, it must record the transaction in its accounting system to show whether the sale resulted in a gain or loss. When making the journal entry, the company must remove the original cost of the asset and its accumulated depreciation (for fixed assets) from its records. Hence, the gain on sale journal entry will be a credit entry to the gain on sale of assets account, a credit to the asset account, a debit to the cash account, and a debit to the accumulated depreciation account.