Debit new asset
debit loss (if any)
debit accumulated depreciation
Credit cash / bank
credit profit (if any)
credit old car trade-in
Another Journal Entry was created on 2005-09-27.
Debit cash / bankCredit vehicle account
the information is entered in the general journal, which is called the book of original entry.
Debit loss of motor vehicleCredit vehicle account
debit wages expensecredit shares in share capital
[Debit] Vehicle Purchased [Credit] Cash / bank
Compound journal entry is that entry which records more than one business transaction in one single journal entry.
There is no journal entry for forecasting sales rather journal entry is made for actual sales when they occur.
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 (if any)Credit Vehicle accountcredit profit (if any)
Yes journal entry to adjust the depreciation charge is required while shifting from one method to another method.
Recording of a transaction in an accounting journal, such as the General Journal. The journal entry has equal debit and credit amounts, and it usually includes a one-sentence explanation of the purpose of the transaction is called journal entry.