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A
Aaronc5150
July 10, 2025
Question

Purchase/Sale of a vehicle

  • July 10, 2025
  • 1 reply
  • 23 views

Hello.  I recently purchased a vehicle for $22,000 and recorded the vehicle as an asset when purchased.  I just sold the same vehicle for $23,000.  What is the best way to record this sale? I know the $1000 will show as profit, but I want to make sure the other $22,000 from the sale is a wash from the original purchase so it doesn't look like income.

1 reply

Rainflurry
Rainflurry
Level 11
July 10, 2025

@Aaronc5150 

 

Did you buy the vehicle in 2025?  If so, and you sold it for cash, the entry to record the sale is a simple journal entry:

 

 DebitCredit
Bank Account (deposit)23,000 
     Vehicle (Fixed Asset - to close) 22,000
     Gain on asset sale (Other income) 1,000

 

You can also record that using a bank deposit (New > Bank deposit).  List the vehicle's asset account at $22,000 and Gain on asset sale at $1,000 for a total bank deposit of $23,000.

 

If you bought the vehicle in a prior year and took (or should have taken) depreciation, then you will need to recapture the depreciation taken.  

A
Aaronc5150Author
July 15, 2025

I did buy and sell in 2025.  This was very helpful, thank you!!

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