Results 1 to 5 of 5

Thread: New Vehicle at Cost Journal

  1. #1
    Full Member
    Join Date
    Mar 2014
    Location
    Cape town
    Posts
    35
    Thanks
    13
    Thanked 1 Time in 1 Post

    New Vehicle at Cost Journal

    Hi All,

    We bought a new Vehicle (passenger) for the company.

    I just need to know the correct way to post the initial journal to record the purchase. We paid a Deposit and the rest will be on installment sale creditor.

    This is what i though (please correct me if i'm wrong).

    Dr Vehicles @ cost R303 000
    Cr Installment sale Creditor R303 000

    Dr Installment Sale creditor R 60 600 (the deposit)
    Cr Bank R 60 600



    Then Monthly
    Dr Installment sale creditor R 5 500
    Cr Bank R 5 500


    Please tell me f this is correct ( i have never posted such a journal) i was told not VAT implications as its a passengers vehicle (The R303 000 includes everything).

    Any help would be good.

    Regards
    Last edited by Dave A; 29-Feb-16 at 12:22 PM.

  2. #2
    Full Member
    Join Date
    Mar 2014
    Location
    Cape town
    Posts
    35
    Thanks
    13
    Thanked 1 Time in 1 Post
    Good day,

    Anyone here that can assist me please? We have our year end and i need to post the correct journal for this.

    Regards

  3. #3
    Bronze Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    199
    Thanks
    17
    Thanked 41 Times in 35 Posts
    You have it exactly right Mango

  4. #4
    New Member
    Join Date
    Mar 2016
    Location
    Johannesburg
    Posts
    7
    Thanks
    0
    Thanked 1 Time in 1 Post
    Hi Mango,

    It seems you have neglected the interest effect on the purchase of your vehicle. At year end you will have to journalise out the interest and expense it as none of your journals show the interest effect of the instalment.

    Hope this makes sense.

    Companyservices

  5. #5
    Full Member
    Join Date
    Mar 2014
    Location
    Cape town
    Posts
    35
    Thanks
    13
    Thanked 1 Time in 1 Post
    Hi Companyservices,

    You are so right... but i saw the previous years they got the years interest from the bank and journalled it out on the last day of the year. Im happy with
    this as the rates goes up and down and a few journals at year end isn't to much work :-)

Similar Threads

  1. Pastel journal on Motor Vehicle Purchased and Motor vehicle sold
    By CharleneHyman in forum Accounting Forum
    Replies: 1
    Last Post: 19-Nov-15, 08:38 PM
  2. Opening balance & journal
    By strike eagle in forum Accounting Forum
    Replies: 0
    Last Post: 01-Jun-15, 12:58 PM
  3. [Question] Renewing your vehicle licence when the vehicle is registered to a business
    By Musiclover08 in forum General Business Forum
    Replies: 1
    Last Post: 03-Jan-15, 06:37 AM
  4. Cash Payments Journal
    By Simimano in forum Accounting Forum
    Replies: 25
    Last Post: 04-Apr-13, 12:57 PM
  5. Latest Cost to Weighted Cost
    By aaronatkinson in forum Accounting Forum
    Replies: 1
    Last Post: 28-Feb-13, 11:27 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •