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Late Learner
Oct 26, 2009, 04:22 AM
I need to record journals for gain/loss of vehicle sold 1 March 2009.

Net proceeds $7500
WDV 30/6/08 = $10500
Depreciation 15% reducing balance

I have calculated this way

10,500/6.67 X 200% X 0.67 (8months depreciation) = 2109
Value of car at sale $8,391

How do I record this balancing journal? Is it a loss on sale of $891?

Thanks
Late Learner
morgaine300
Oct 26, 2009, 10:32 PM
If you would do 10,500 x .15 x 200% x 8/12 you would avoid all those rounding issues and end up with a nice neat 2100.

But... otherwise yes you've got the idea.