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Lo2007's avatar
Lo2007
User
2 months ago

Add a new vehicle purchased with finance company

Which accounts do I debit and credit when adding a vehicle purchased on finance?

2 Replies

  • DuncanS's avatar
    DuncanS
    Ultimate Partner

    Lo2007 Earl_HD 

     

    Hope your Accountant is Online.

    Accounting for Cars is complex.

     

    Ledgers may include -

     

      Car    eg Ford Ute May 2024   I include the Rego Number

         Depreciation and GST Limits apply

         Private Use is considered

     

      Interest on Loan eg  Interest WBC Loan  Ford Ute

       I do monthly Journals for the Interest (refer Amortisation Schedule)

     

      Loan Repayments   eg WBC Loan $888 by 48 months

      Balloon eg WBC Loan Balloon $10,000 April 2028

     

      Depreciation of the Car   eg Ford Ute May 2024 Accum Depn

      I do monthly Journals for the Car Depreciation

     

    Duncan

     

     

     

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator

    Hi Lo2007,

    Thanks for your post. In scenarios like this, we recommend consulting an accountant to ensure you get an accurate solution. Additionally, I suggest visiting this post for more detailed information. Car finance loan and GL

    Feel free to post again, we're happy to help!

    Regards,
    Earl