Capital Purchases and Finance in AccountRight
HOW TO RECORD CAPITAL PURCHASES AND FINANCE IN ACCOUNTRIGHT There are many finance options available to purchase capital equipment. Commonly used in Australia are: chattel mortgages: ownersh...
Forum Discussion
There are a couple of issues here that make me think that you really need to talk to the client's accountant.
A chattel mortgage implies that the vehicle was bought by the client. Was the agreement a separate document?
It will depend on the book value of the vehicle at the time of sale. The accountant will need cost of vehicle, amount of loan, amount repaid to date and date of sale.
They will then work out the depreciated value of the vehicle and if there has been a profit or loss on the sale of the vehicle.
To save me writing a lot of details of processes about if this, if that, once you have the information please come back through the main part of the forum if you need further assistance.
