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R
ricksilkey
July 11, 2024
Question

Auto loan payoff

  • July 11, 2024
  • 1 reply
  • 0 views

One of our vehicles was totaled in an accident.  The at-fault person's insurance paid off the vehicle.  How do I record that in QB Desktop 2022?

1 reply

Rainflurry
Rainflurry
July 12, 2024

@ricksilkey 

 

You need to know the accumulated depreciation taken on the vehicle as of the date of the accident.  Once you know that, create a journal entry that looks like this:

 

 DebitCredit
Accumulated Depreciation (to close)XXX 
     Loan Payable (to close)   XXX 
     Vehicle asset - original cost (to close) XXX
Bank Account (if any cash received)XXX 
Gain/loss on disposal of asset (other income) to balance journal entry (loss if debit, gain if credit)  
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