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    rizwan761065's Avatar
    rizwan761065 Posts: 2, Reputation: 1
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    #1

    Dec 24, 2011, 10:04 AM
    Accounting journal voucher treatment
    Sale a motor vehicle at 251000
    Accumlated deprication is 184000
    Cost of vehicle is 182000

    What is the journal entry for this
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    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
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