how to record transactions for fully depreciated vehicle after selling

Ravinder

 

Hi there,

1.   I bought a VAN for business on 21 January 2019 for $9000 from someone. I fully depreciated it as an instant              assest write off in the annual tax return 2018-19. Now I have sold the vehicle to someone on 2.12.2020 for                  $5500. The buyer has deposited $100 as advance payment and rest of the amount he paid by cash.

      

2.   After selling the vehicle I also paid the amont of $437 for registration and the buyer transfered the same amount into my account. 

    please guide how to record the transactions?

 

Kind Regards

Ravinder

 

Julie_A_C

Hi @Ravinder 

 

Do a general journal entry (tax inclusive/sale ticked) memo sale of van

Credit Other Income account-Sale of Capital Item $5,500

Debit Bank $100

Debit either Loan to Director/beneficiary/owners equity (depending on business structure) $5400

 

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.