Selling an old car...

[John R. Sowden]

On Mon June 26 2006 11:26, John R. Sowden wrote:
> On Mon June 26 2006 00:04, Beth Leonard wrote:
> > On Mon, Jun 26, 2006 at 01:20:51AM -0400, Lincoln A. Baxter wrote:
> > > I intend to deposit the proceeds into my checking account.  The problem
> > > is... where should I have accounted for the value (asset) of this old
> > > car.
> >
> > Equity:Opening Balances
> > Assets:Fixed Assets:Old Car
> >
> > Unless you want to back-track in the depreciation expenses of your
> > old car, it's easiest to just use the actual value you sold it for.
> >
> > Now that you've sold it, the money goes into your checking account
> > from your Assets:Old Car account, bringing the Old Car account back
> > to $0.  In essence, the money your bank account just received is
> > for an asset you held before you started, an opening balance asset.
> >
> > There's a bit on depreciation in the manual if you want to do
> > it for your next car:
> > http://www.gnucash.org/docs/v1.8/C/gnucash-guide/dep_example1.html
> >
> > I also like the cap gains example:
> > http://www.gnucash.org/docs/v1.8/C/gnucash-guide/capgain_example1.html
> >
> > --Beth
> > +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
> > +                             Beth Leonard                          +
> > +       O say, does that star-spangled banner yet wave              +
> > +       O'er the land of the free and the home of the brave?        +
> > +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
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>
> undepreciated value of car in depreciation schedule:  3,800.00 (including
> salvage value)
>
> Sales Price: 4,200.00
>Original Purchase Price: 10,000
>
> DR Cash                                    4,200.00
> CR Other Income                                              400.00
> CR Asset, Vehicle #3                                     3,800.00
>
> Remove Asset from Balance Sheet:
> DR Accumulated Depreciation     6,200.00
> CR Asset, Vehicle #3                                     6,200.00

I made a boo boo.  See adjustment above.
I believe I got this right, as I only buy sell vehicles about once every 3-5 
years.
-- 
John R. Sowden
AMERICAN SENTRY SYSTEMS, INC.
Residential & Commercial Alarm Service
UL Listed Central Station
Serving the San Francisco Bay Area Since 1967
mail at americansentry.net
www.americansentry.net