how to record transactions for fully depreciated vehicle after selling

Question

&nbsp;Hi there,1.&nbsp; &nbsp;I bought a VAN for business on 21 January 2019 for $9000 from someone. I fully depreciated it as an instant&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; assest write off in the annual tax return 2018-19. Now I have sold the vehicle to someone on 2.12.2020 for&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $5500. The buyer has deposited $100 as advance payment and rest of the amount he paid by cash.&nbsp; &nbsp; &nbsp;&nbsp;2.&nbsp; &nbsp;After selling the vehicle I also paid the amont of $437 for registration and the buyer transfered the same amount into my account.&nbsp;&nbsp; &nbsp;&nbsp;please guide how to record the transactions?&nbsp;Kind RegardsRavinder&nbsp;

julie_a_c · Accepted Answer

Hi&nbsp;Ravinder&nbsp;&nbsp;Do a general journal entry (tax inclusive/sale ticked) memo sale of vanCredit Other Income account-Sale of Capital Item $5,500Debit Bank $100Debit either Loan to Director/beneficiary/owners equity (depending on business structure) $5400&nbsp;Do a receive money transaction to the bank account for $437 with memo- reimbursement of rego for van sold from purchaser and allocate to the same bank account, which will account for the withdrawal and deposit.&nbsp;

ravinder · Answer

Hi Julie&nbsp;Thank you so much for your help, really helpful.&nbsp;Kind RegardsRavinder&nbsp;

ravinder · Answer

Hi Tracy&nbsp;Thanks much for your advise.&nbsp;Kind RegardsRavinder

tracey_h · Answer

Hi&nbsp;Ravinder&nbsp;
&nbsp;
Thanks for your post. As advised on your earlier post, Sale/disposal of motor vehicle, you will need to discuss this with your accountant. Some accountants prefer these transactions be recorded as General Journals, while some prefer they are recorded as Sales. Your accountant will also need to advise which accounts to allocate the payment amounts&nbsp;to and the applicable tax codes.
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how to record transactions for fully depreciated vehicle after selling

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