cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Super Explorer **

Company Vehicle Sold

When ny Vehicle is sold (an asset) in QuickBooks, How is this money from the sale  of the vehicle posted in QuickBooks? What account would be used to put in under? It would not be posted to an income or expense account I wouldn't think.

2 Comments
Established Community Backer ***

Re: Company Vehicle Sold

You should have had the vehicle listed as a fixed asset with an associated accumulated depreciation account - assumes the vehicle belonged to the company.

 

If that is the case, create an income account called Gain/Loss on asset sales, then journal entries
debit gain/loss and credit the fixed asset car account for the balance in the fixed asset account
debit accumulated depreciation car and credit gain/loss for the balance in the accumulated depreciation account

deposit the check you received and use the gain/loss account as the source account for the deposit.

 

The net of the sale and book value will determine whether or not there is income or loss on the transaction, that gain or loss will be shown as the balance in the gain/loss account on the P&L

Super Explorer **

Re: Company Vehicle Sold

The accountant will handle this when the vehicle is sold. thank you for your response.

Need to get in touch?

Contact us