Totaled Company Vehicle

You need to obtain the basis for the totaled vehicle, the accumulated depreciation, and the reimbursement. Then create a journal entry.

Credit the fixed asset account to remove the totaled vehicle

Debit the accumulated depreciation to remove the balance

Debit the checking account for the insurance money

Then you will debit or credit gain on the sale of an asset. This will depend on the basis, acc depreciation and reimbursement.

New vehicle

Debit fixed assets and credit checking or loan payable. This could also be entered into the check register for a cash payment.

Marc Barnes

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