Hi Chiko,

if you use Sage 50 Accounts Professional you may be able to use the Fixed Asset Disposal Wizard, for other variants of the software you can post manual journals, this article has more: How do I dispose of a fixed asset?

If this helps, please click Verify Answer.

Andy,
Sage UKI

Thank you!

I use sage 50 accounts and how can I do this?

Hi

You would credit the motor vehicle cost (balance sheet) code with the cost of the vehicle and credit the motor vehicle depreciation (balance sheet) code with the accumulated depreciate value.  The difference is the net book value on disposal (or transfer in this case), which you would post to the fixed asset disposal code in the p&l area.  If you have paid anything for it, that would be posted via the bank to the credit side of the fixed asset disposal code to create a profit or loss on disposal of the vehicle.  

Please note that there could be tax implications if you have taken the vehicle from the company at less than its market value and don't forget to let HMRC know that the vehicle is no longer being supplied to you through the company (form P46(car)