In accounting what are the journal entries <span title="for.................................?">for.........................</span>

Question

On may 23 2008 a vehicle which had cost £35,000 was destroyed in a fire. the vehicle had been depreciated by £28,000 by 31 May 2008 (including £7,000) for the current year). The insurance company has agreed to pay £9,000 to Salutin plc.

Salutin plc is the company

Answer 1

Journals suggested:

Dr Accumulated depreciation £28,000 Cr Sale of vehicles

Dr Sale of vehicles £35,000 Cr Vehicle Capital Account

Dr Bank Account £9,000 Cr Sale of vehicles

Dr Sale of vehicles£2,000 Cr Profit &amp;Loss A/c

Answer 2

journal entries are part of a &quot;cycle&quot;

they tell you about your transactions

i can&#039;t answer this more clearly than that sorry

Answer 3

Debit - Accumulated Depreciation, £28000

Debit - Depreciation Expense, £7000

Credit - Vehicle, £35000

- to record the loss of vehicle from fire and zero out the corresponding accumulated depreciation

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