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How to Book the Sale of a Car in QuickBooks

Please would you tell me how to record sale of business car in quick books? I just sold it for $250.  Thank you very much.
It depends on what’s booked in QuickBooks already.  You should have two asset accounts – a fixed asset for the car and depreciation.  You need to clear these two accounts to $0, and the difference between that entry and the $250 will be either a gain or loss. 

Example #1:

Asset = $5000
Depreciation = <$5000>
Gain = $250

The journal entry would look like this:

Debit – Cash $250
Debit – Depreciation $5000
Credit – Asset $5000
Credit – Gain $250

Example #2:

Asset = $5000
Depreciation = <$4000>
Loss = $750

The journal entry would look like this:

Debit – Cash $250
Debit – Depreciation $4000
Debit – Loss $750
Credit – Asset $5000


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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

Ruth is the an Intuit Premier Reseller that offers great deals on QuickBooks POS and QuickBooks Enterprise. She has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

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2 Responses to How to Book the Sale of a Car in QuickBooks

  • elias morales says:

    can you explain to me in this email how i would record car sales without showing them on the profit loss statement because it is money not yet received but i still want to track car sales.

    • Hi Elias,

      Select Customize Report and change the report basis from Accrual to Cash.

      If you always want to see your reports on a Cash basis, you can change your preferences in Edit > Preferences > Reports & Graphs > Company Preferences.

      Ruth