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    accounting1985's Avatar
    accounting1985 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 10, 2009, 03:21 PM
    Asset still owed to Bank
    I need help on a problem,
    I need to take off 5 trucks that were taken to an auction for sale.
    The trucks are still owed for $122,676.57. What is the process on taking them off the books.
    Depreciation in 2009 12494.38
    Total Depreciation: 54794.38 (including 12494.38)
    Assets costs: 162433.10

    The trucks are being autioned and will pay the auction the commission then the bank for the loans. What is my AJE supposed to look like? :confused:
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Jul 10, 2009, 11:04 PM

    You can not make any adjusting entries for disposal until the auction sale is finalized. Why? Because you may or may not agree to the bid prices offered at auction sale, hence there is no deal. Again, you may perhaps change your mind.

    I hope you understand that the recognition and measurement principle. You can not recognize a transaction or event until such time as there is an event. It also suggests that the values must be easily determinable.
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