Hi Family, I would like to ask, how do I dispose of an asset of vehicle type that has been written off and the period I want to dispose in was 11-2022? The vehicle received some funds from the insurance, more than what the car is worth now.
I would like to ask what figures goes to the Proceeds amount field as the current cost of the asset has changed. Thank you in advance.
Hello,
Disclaimer: I am not a CPA. Please check with your CPA to verify the accounts and periods to adjust.
Write off the vehicle with $0 proceeds in November 2022.
In the month when insurance reimbursement was received, enter the cash payment via GL Journal Transactions. Use a debit to increase cash and a credit to an income account such as Other Income. Or, create a new Income account called Insurance Proceeds, and credit the Insurance Proceeds account.
I think insurance proceeds received after the vehicle is ‘deceased’ will not impact the Cost of the vehicle.
Laura
Thank you so much
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