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Thread: Sale of vehicle accounting

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    Sale of vehicle accounting

    We sold a business company car this month. The vehicle was paid in full and also fully depreciated. How do I account for this in the accounting books? Is it just a simple "write off" from asset (dr) and accumulated depreciation (cr)? What do I do with the cash I received for the vehicle we sold? (Income?)

    The transaction was actually a "trade-in". We bought a new vehicle (HP) and got paid for the other vehicle.(same dealer)

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    Credit asset cost with the cost price
    Debit Accumulated Depreciation with depreciation
    Debit and credit disposal account with the above
    Credit disposal account with the proceed

    The balance equals accounting profit / loss on disposal

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