@ricksilkey
You need to know the accumulated depreciation taken on the vehicle as of the date of the accident. Once you know that, create a journal entry that looks like this:
| | Debit | Credit |
| Accumulated Depreciation (to close) | XXX | |
| Loan Payable (to close) | XXX | |
| Vehicle asset - original cost (to close) | | XXX |
| Bank Account (if any cash received) | XXX | |
| Gain/loss on disposal of asset (other income) to balance journal entry (loss if debit, gain if credit) | | |
