Our company's Director wants to sell his single cab bakkie, the business wants to but it from him. The market value is R 200 000 so well buy it for that amount.
The Bakkie is still under finance from Std bank with outstanding amount to be R 138 000.00 as it stands now.
The Director owes money on his "loan account also"...so my question is what would be the correct way to record this transaction?
Dr Vehicles @Cost R 200 000.00
Cr Peter (supplier) R 200 000.00 (I take it I need to set the Director up as a supplier)
Dr Peter (supplier) R 138 000.00 (this is when settlement takes place with Std bank)
Cr Bank R 138 000.00
Dr Peter (supplier) R 62 000.00 (the balance owing to offset against his Loan account)
Cr Peter Loan R 62 000.00
Please could someone tell me if this is correct ? I don't want to make a mistake with this....lol