Entry for sale of vehicle

Dear friends

 

1. Vehicle sold for 400000/-

  I received by cash 200000/- & chq pymt 200000/-

what is the accounting entry pls guide me.

Very urgent

 

Thanks & Regards

Malarvannan.D

Replies (7)

cash a/c dr. 2 L

bank a/c dr. 2L

loss on sale (if any) a/c dr. (e.g. 3L)

        to vehicle a/c 2+2+3 L 

Yes. Agreed wid aditya
Also take care of accumulated depreciation (if any)

ya.i agrd wid adithya & mihir

Dear

Above all the Profit or Loss on Sale out of realization also tobe considered & accounted

The correct entry i think is:-

If cheque is not deposited on same day:

CashA/c............Dr  400000

P&LA/c.....LossDr

       To Vehicle A/c    WDV value of asset     

        To P&LA/c.....Profit

If cheque is deposited on same day:

Bank A/c................Dr  200000

Cash A/c................Dr 200000

 P&LA/c.....LossDr

               To Vehicle A/c    WDV value of asset    

                To P&LA/c.....Profit

 

Bank A/c................Dr  200000

Cash A/c................Dr 200000

 P&LA/c.....LossDr

               To Vehicle A/c    WDV value of asset    

                To P&LA/c.....Profit

 

 

 

 

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