Balance sheet - Sales proceeds?

Question

A fixed asset has a net book value of 10 but was sold for 22. Thus, its sales proceeds is 22.

Do you add this sales proceeds to the overall cost of the Fixed asset?

Answer 1

Once you sell an asset, you have to close off all accounts relating to the asset. Your asset has nbv of 10. Let's assume cost was 15 and accumulated depreciation was 5 just before the sale. Sales proceeds were 22. You made a gain of 12. Your entries will be:
Dr Cash (or a/cs receivable) 22
Dr Accumulated depreciation 5 (to close off the a/c)
Cr Asset at cost 15 (to close off the a/c)
Cr Gain on disposal of asset 12 (income statement item)

Answer 2

No. The cost of the Fixed Asset (FA) did not change. The fixed asset should have a depreciated value. You will need to revaluate the asset to determine its cost at the point of the sale.

You can get some ideas on how to do that at Wiki: See link below.

Answer 3

When you sell a fixed asset you will have a journal entry
Debit either cash or a receivable for the sales proceeds
Credit the fixed asset account for the cost of the asset
Debit the Depreciation account for accumulated depreciation
And the difference is the gain or loss

So you might have
Cash 22K debit
Asset 30K credit
Depr 20K debit
Gain 12K credit