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    Burlgirl's Avatar
    Burlgirl Posts: 1, Reputation: 1
    New Member
     
    #1

    Jul 13, 2012, 09:15 PM
    Fixed asset sale
    How do I post the sale of a building that is being paid over time.
    Sale 220K
    Down payment 15K
    Monthly payments 1400.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
     
    #2

    Jul 14, 2012, 08:37 PM
    as I said in an earlier answer a basic understanding of accounting is needed before you answer such questions

    We have a double entry system this means for each entry there is a counterpart. In the case of assets there are liabilities. When you expend an asset i.e. cash to acquire another asset there is a transfer of value when you acquire an asset using credit you create a liability. Armed with this knowledge we can attack your problem where did the money come from to acquire the asset? Where did the money come from to make the repayments? Are there aspects of these transactions which have not been stated? For example; are we dealing with costs or valuations? Now apparently what I have illustrated here is the reverse position

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