Debit cash / bank
Credit vehicle account
The amount received for sale of the vehicle with depreciation is compared to the vehicle's net value and debited as a loss or credited as a gain.
debit cash / bankdebit accumulated depreciationdebit loss on sale (if any)credit assetcredit profit on sale (if any)
Debit cash / bankdebit accumulated depreciationdebit loss (if any)Credit Vehicle accountcredit profit (if any)
When recording a journal entry for a sales account, ensure that the sales are strictly done on credit terms.
Debit cash / bankCredit equipment
The amount received for sale of the vehicle with depreciation is compared to the vehicle's net value and debited as a loss or credited as a gain.
debit cash / bankdebit accumulated depreciationdebit loss on sale (if any)credit assetcredit profit on sale (if any)
Debit cash / bankdebit accumulated depreciationdebit loss (if any)Credit Vehicle accountcredit profit (if any)
profit
debit loan accountcredit asset account
When recording a journal entry for a sales account, ensure that the sales are strictly done on credit terms.
Debit cash /bankdebit liabilitiesCredit assets
Debit cash / bankCredit equipment
To record a journal entry for sales, the possession of goods or services is transferred from business to client or end user.
debit cashcredit vehicle
Whenever any business transaction occur It is compulsory to make journal entry so this is true in case of sales as well.
What needs to happen when recording a Journal Entry for a sale on account