Help with Journal entries

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Question:

How do I get a company truck off of the books? We did not pay it off. It was needed elsewhere. The company is no longer paying for it.

Answer:

You will need to get the following information from the QuickBooks Balance Sheet accounts:

1)   How much is left on Loan due for Truck?

2)   Purchase price of truck

3)   Accumulated depreciation amount

Once you have the above information, you can figure it out, gain or loss to current P&L to take it off books.

Your journal entry would look like:

  • Loan Due to Bank > Debit
  • Truck Asset > Credit
  • Accumulated Depreciation > Debit
  • Gain or loss on truck = difference between debit and credit.

If you have more total debit than total credit = gain

If you have more total credit than total debit = loss

 

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