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-   -   Purchase new car with trade in, how to book (https://www.askmehelpdesk.com/showthread.php?t=217568)

  • May 19, 2008, 12:41 PM
    crdfriday1113
    Purchase new car with trade in, how to book
    We purchased a new car and traded in an old one. How can I get the old car off the books and put the new one on?

    Thanks
    Cindy
  • May 19, 2008, 02:11 PM
    CaptainForest
    Dr. New Car
    Dr. Accumulated Amortization Old Car
    Cr. Old Car

    And whatever other journal entries are needed based on the facts of the case...

    So you will probably have a Cr. To Cash

    And the net Balance (Dr. would be a loss) or if it's a net Balance of a Cr. then it is a gain.
  • May 22, 2008, 03:29 PM
    morgaine300
    An added note, at least in the U.S. a gain cannot be recognized on your books when trading in of like items. If you end up with a gain, you must remove that amount from the cost of the new car. i.e. rather than having the credit of the gain, you'll reduce the debit side by reducing the debit to the new car.

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