Ask Experts Questions for FREE Help !
Ask
    crdfriday1113's Avatar
    crdfriday1113 Posts: 1, Reputation: 1
    New Member
     
    #1

    May 19, 2008, 12:41 PM
    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
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #2

    May 19, 2008, 02:11 PM
    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.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #3

    May 22, 2008, 03:29 PM
    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.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accounting Entries for purchase & sales return and credit purchase & sales with examp [ 10 Answers ]

Accounting Entries for purchase & sales return and credit purchase & sales with examples

What is a good thesis statement with any book and another book or movie [ 2 Answers ]

Well do u have a good thesis stament for sny book and movie

Looking for book from The Weekly Reader Book Club, 60's or 70's, paperback, on WWI. [ 1 Answers ]

Hello All, I trying to find a book that I bought in the mid-60's from The Weekly Reader Book Club. I believe it was simply called World War I. It's a small paperback. There's pictures in the book, one of which is subtitled "Doughboys to the Front". In this photo is my grandfather. I loaned...


View more questions Search