Insurance

Motor Salvage Vehicle Sold

Recording proceeds from selling a total-loss vehicle that became the insurer's property.

Account NameTypeDebit ($)Credit ($)
Cash / Auction ProceedsAsset (+)4,000.00-
Salvage Inventory (Vehicle)Asset (-)-3,200.00
Gain on Salvage SaleRevenue (+)-800.00

💡 Accountant's Note

After a total loss settlement, the salvage vehicle is taken over and sold at auction. The proceeds reduce the net claims cost. Salvage management is an important cost recovery process for motor insurers.

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