USA Journal Entry for A Totaled Vehicle

[Jason Taylor]

So we had a company vehicle totaled in an accident. Here are the numbers:


Vehicle Asset an balance sheet - $8500
Insurance paid out $17,000 (7500 to lender to payoff loan, and 9500 cash to us)....I'm rounding the numbers for ease of calculations.

We never saw the 7500 as it was paid directly from the insurance company to the lender

How do I handle the final journal entry on this vehicle asset??

 

[kirby]

Can you give us the following:
Gross amount of vehicle on books
Accumulated depreciation amount of vehicle on books
The above two should net to your $8,500 figure
Vehicle loan on books before payoff (should be the 7,500)
Any other asset or liability related to the vehicle that is on the books

 

[Shahzad]

Is 8500 $ are written down value or cost
general entry may be made

Method 01.
01)

Asset-Accumulated Depreciation Dr.
Insurance Claim Receivable Dr.

Asset - Cost Cr
Gain/loss Cr


Insurance Claim Received

Bank Dr
Lender Dr

Insurance Claim Dr