Forum Discussion

Ravinder's avatar
Ravinder
Experienced User
5 years ago

how to record transactions for fully depreciated vehicle after selling

  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 ha...
  • Julie_A_C's avatar
    Julie_A_C
    5 years ago

    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.

     

Tracey_H's avatar
Tracey_H
Former Staff

Hi Ravinder 

 

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 to and the applicable tax codes.

 

If you need assistance with your software please do let us know, we are happy to help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Ravinder's avatar
Ravinder
Experienced User
5 years ago

Hi Tracy

 

Thanks much for your advise.

 

Kind Regards

Ravinder

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