rizwan761065
Dec 24, 2011, 10:04 AM
Sale a motor vehicle at 251000
Accumlated deprication is 184000
Cost of vehicle is 182000
What is the journal entry for this
pready
Dec 26, 2011, 04:39 AM
Your figures are off! Your Accumulated Depreciation cannot be for more than the cost of the vehicle.
Your journal entry will be:
Debit Cash for the amount received
Debit Accumulated Depreciation for the amount of accumulated depreciation
Credit Vehicle for the cost of the vehicle
And either a Debit Loss on Sale of Vehicle or a Credit Gain on Sale of Vehicle for the difference between your debits and credits to get them equal