What are the journal entries for the cash sale of a vehicle?

There are two cases

Case 1

Selling of vehicle is business of a proprietor

So vehicle is goods for the proprietor.

Then in such case it will be considered sale in the normal course of business.

Entry for sale of goods is

DR. cash a/c and CR. Sale a/c.

Cash a/c has been debited because it is received.

All incomes are credited and sale is income.

Case 2

Selling vehicle is not part of proprietor 's business.

In such case vehicle will be considered as an asset.

Selling of such vehicle is not the part of normal course of business.

Entry for cash sale of vehicle is

Dr. the cash a/c and cr. Vehicle a/c.

Asset and cash is real account and rule of real account is debit what comes in and credit what goes out.

So cash has come in and vehicle has gone out of the business.

Now if u sell vehicle you might either incur loss or earn profit.

When u earn profit

Dr cash a/c with the amount you receive

Cr. Vehicle a/c with its W.D.V.(BOOK VALUE) exist at the time of sale of vehicle.

Credit the difference amount to profit and loss a/c

In case of loss

Dr. Bank a/c

Cr. Vehicle a/c

Dr. P&L a/c with difference amount.

IGNORE GRAMMATICAL MISTAKES.