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.
Best answer by Laura02
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
+19Hello,
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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