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arkvalleyinfo
October 19, 2018
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A vehicle was totaled, the insurance Company paid for it. it was entered in as a credit to the ins. company and now they have a credit...how do I correct this? QB online

  • October 19, 2018
  • 1 reply
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The Insurance company paid for a vehicle that was totaled. It was paid in full already, so no payoff balance. the check was entered in as a credit to the ins company. So now the ins. company has a credit on their account. Which they should not have...how do I correct this in QB online?

Best answer by Rustler

You should have the company vehicle on the books as a fixed asset and an associated fixed asset accumulated depreciation account too

Create an income account called gain/loss on asset, then do the journal entries

debit gain loss
credit fixed asset account for the amount in this account

debit accumulated depreciation - vehicle for the amount in this account
credit gain loss

deposit the ins check and use the gain/loss account as the source (from) account for the deposit


1 reply

Rustler
RustlerAnswer
October 19, 2018

You should have the company vehicle on the books as a fixed asset and an associated fixed asset accumulated depreciation account too

Create an income account called gain/loss on asset, then do the journal entries

debit gain loss
credit fixed asset account for the amount in this account

debit accumulated depreciation - vehicle for the amount in this account
credit gain loss

deposit the ins check and use the gain/loss account as the source (from) account for the deposit


    U
    UnitedFlight
    October 26, 2018

    That is very helpful - thanks for the reply.  Question, if the insurance check is greater than the amount remaining on the asset, how is the additional income reported.  Do I credit the asset for the entire amount of the insurance check, or only up to the amount of remaining depreciation account? How do i record the other?

     

    thanks again

    Rustler
    Rustler
    October 26, 2018

    As I said, deposit the check and use the gain/loss account as the source (from) account for the deposit.

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