I sold a car asset, how do i enter a sold asset into checking and make the asset value to 0

Den H

I sold a car asset, how do i enter a sold asset into checking and make the asset value to 0

Boatnmaniac

What I have done in the past:

When the amount of the sale was less than the asset value in the asset account:

1. Enter a deposit transaction in the checking account for the amount the car was sold for.
2. For the category enter a transfer from the car account….the name of the car account enclosed in [brackets]. This will reduce the value of the car asset by the amount of the sale.
3. In the car asset account: Upper right Gear icon > Update Balance > enter $0 for the remaining balance > OK.

When the amount of the sale was more than the asset value in the asset account:

1. Enter a deposit transaction in the checking account for the amount the car was sold for.
2. Split the category:
3. Line 1 of the split would be the asset value from the car account and enter a transfer category (car account enclosed in brackets). This will change the asset value of the car to $0.
4. Line 2 of the split would be the profit from the sale (the amount above what the asset value was). Assign it a Income category so it shows up as income in reports.

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Boatnmaniac

What I have done in the past:

When the amount of the sale was less than the asset value in the asset account:

1. Enter a deposit transaction in the checking account for the amount the car was sold for.
2. For the category enter a transfer from the car account….the name of the car account enclosed in [brackets]. This will reduce the value of the car asset by the amount of the sale.
3. In the car asset account: Upper right Gear icon > Update Balance > enter $0 for the remaining balance > OK.

When the amount of the sale was more than the asset value in the asset account:

1. Enter a deposit transaction in the checking account for the amount the car was sold for.
2. Split the category:
3. Line 1 of the split would be the asset value from the car account and enter a transfer category (car account enclosed in brackets). This will change the asset value of the car to $0.
4. Line 2 of the split would be the profit from the sale (the amount above what the asset value was). Assign it a Income category so it shows up as income in reports.

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Tom Young

The comprehensive accounting entry here (a split entry) would be:

Debit (increase) Checking Account $X,XXX (Deposit amount)
Credit (decrease) Car Account $Y,YYY (Amount needed to set Account value to $0)
Debit (loss) or Credit (gain) Capital Gain/loss $X,XXX - $Y,YYY

If it's a gain then it's reportable for taxes, if it's a loss then it's not.

If it's a non-deductible loss then another approach here would be to make the deposit in the checking Account and in the Category field enter the name of the checking Account, surrounded by square brackets: [Name of checking Account]. Then make an entry, in the same fashion, in the car Account using an amount that brings the Account Balance to $0. This "magically" adds the cash to checking and zeros out the car Account without affecting anything else in your file.