TRADE IN OF MOTORBIKE ON ANOTHER MOTORBIKE AND PAID FOR IT WITH CREDIT CARD

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kazza62
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TRADE IN OF MOTORBIKE ON ANOTHER MOTORBIKE AND PAID FOR IT WITH CREDIT CARD

We have through the business traded a motorbike in on a bigger motorbike and have paid for it by credit card.

I need to know how to enter it in myob.

Add the new motorbike in assets and how do I enter the other bike that was used for a trade in.

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IanChait
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Re: TRADE IN OF MOTORBIKE ON ANOTHER MOTORBIKE AND PAID FOR IT WITH CREDIT CARD

Hi @kazza62 

 

There are a few transactions here. 

Was the motorbike that was traded in, in the business as an asset, and if not, who owned it?

Was the credit card payment on a business credit card, and if not who's card is it?

I would do this in 3 entries

 

1. Record the purchase of the new motorbike as an asset 

Dr Asset Account

Cr Suspense Account

 

2. Record the payment by Credit Card

Dr Suspense Account

Cr Credit Card

 

3. Record the trade in

Dr Suspense Account

Cr Proceeds on Sale of Motor Bike 

 

The suspense account should end up with a nil balance.

 

Depending on who owned the traded bike, there needs to be further entries against the Proceeds on Sale of Motor Bike Account.

 

I would have all these accounts as Balance Sheet accounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Email ian@myfc.com.au

kazza62
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Re: TRADE IN OF MOTORBIKE ON ANOTHER MOTORBIKE AND PAID FOR IT WITH CREDIT CARD

Hi Ian,

The business owned the motorbike and it was entered in as an asset.

The credit card is the business.

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