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Purchase of new car

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Contributing Cover User Lloydy
6 Posts
Contributing Cover User

Purchase of new car

Need help placing amounts for new company car deposit of 1,000 on visa, $6,500 trade in on old car,  15,000 loan (not from bank) and 2,000 odd company cheque.  I know I have to set up a liability for the loan but trying to work out how to show the trade in etc is really stumping me any help would be great I have set up rego and insurance account in expences Regards.

Super Partner Tazter
666 Posts
Super Partner

Re: Purchase of new car

Hi Lloydy

Just do a search of the forum and you will end up getting some good information from past posts on the above subject.

I just type in vehicle in the 'Search' box and got the list as per this link

Kind Regards

Tony Lane - Ulverstone - Tasmania
Valued User shoeboxguy
131 Posts
Valued User

Re: Purchase of new car

I would start by doing a bill for the initial purchase for the total invoice as issued by the dealer


with the trade in coded to an asset clearin account


The various payments can then be applied to the bill and you can journal the initail  cost, accumulated  depreciation for the sale of the old vehicle to the asset clearing account





Scott aka The Shoe Box Guy
Valued Cover User boba
254 Posts
Valued Cover User

Re: Purchase of new car

If you are in  Australia, registered for GST and the traded in vehicle was owned by the busines I think you will find that the  ATO will declare that the trade in price includes GST Collected. So you  will need to use the  correct Tax  Code when doing the entry.

Ultimate Cover User Julie_A_C
3,006 Posts
Ultimate Cover User

Re: Purchase of new car

Bob is on the right track, if the vehicle is a business asset and you therefore claimed back the GST at the beginning, there is definitely GST included in your sale price. 


A number of my clients faces have fallen when I have gone to them at BAS time and had to tell them that the 'great' deal they got when they traded in was not so great, as it included GST.  Once bitten twice shy, I hope.


The sale/trade in needs to be recorded as a sale or at least by receive money to get it into the correct section for BAS reporting.

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email:
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)
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