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    Foxcar59's Avatar
    Foxcar59 Posts: 1, Reputation: 1
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    #1

    Apr 8, 2014, 10:07 AM
    How do I record trade in vehicle for a new one?
    We purchase a new truck on time, trade in two vehicles that are fully depreciated, made a down payment of 5k in cash. How would I record this transaction in my books?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Apr 9, 2014, 04:06 PM
    You would debit assets with the full value of the truck, crediting loans for the value of the loan and cash for the deposit,
    credit assets and debit accumulated depreciation for the value of the vehicles and credit profit on sale for the tradein value
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