Entries For Vehicle Traded in

[Becksw21]

Hi

Please could someone assist with journal entries for vehicle traded in with effects of VAT:

Vehicle A Traded in:

Amount Offered: R 180031.08
Settlement Amount: R 93031.08
Nett Amount: R 87000

Vehicle B:
Price incl vat: R 122000
Trade in allowance: R 87000
Cash deposit: R 1000
Balance: R 34000 (paid cash no hire purchase agreement)

[Andromeda]

Without the cost and accumulated depreciation of Vehicle A, you can't be helped. You would also need to advise whether the Vehicle A enjoyed a VAT credit or not, and whether vehicle B qualifies for one or not.

[Neville Bailey]

I suggest that you look at this thread and my explanation in #2.