How do you handle the sale of an asset in the general ledger?

Question

Specifically property (ie:land and building) owned by a company, but which still has the liability of a mortgage attached to it. I'm looking for specific journal entries.

Answer 1

Selling an asset and fully redeeming the mortgage loan are separate transactions. Land is usually not depreciated, but let's assume land is $2m and building is $1m and accumulated depreciation on the building is $300k. You sell your land and building for $3m. Your entry:
Dr A/cs receivable $3m
Dr Accd depn - bldg $300k
Cr Land at cost $2m
Cr Bldg at cost $1m
Cr Gain on disposal of land & bldg $300,000

With the proceeds from the sale, you pay off the mortgage. Assume the mortgage loan balance is $1.5m. Your entry:
Dr Mortgage loan $1.5m
Cr Cash $1.5m

Answer 2

CR the Asset(s)
DR Cash
DR mortgage
The difference is gain or loss on sale of assets

This assumes that the mortgage was paid off at the sale.
This does not factor in depreciation.