Van payoff

[raylaurenza]

we just paid off a van that was a liability. I got rid of the liability, but how do I get rid of the fixed asset. it still shows 2500 of fixed asset. Do I just write off as depreciation.

[JohnDMeyers]

Lots of possible accounts that could be affected with this depending on:
-if you depreciated the van
-if your sale price covered the remaining depreciation
-if your liability plus depreciation was approximately your sale price
-etc.

Here are some accounts to look at:
01-1980-000 van asset
01-1990-000 accumulated depreciation
01-2110-000 van liability
01-5982-000 sale (loss) on van

Basically, wipe out the asset with accumulated depreciation and liability on the other side of the equation. But don't take more out of depreciation than you have counted. (If you record $500 per year toward the van for 3 years, the maximum depreciation "retirement" is $1,500).

If that doesn't cover it, record the remainder of the sale (loss) of van as an expense.