how to record transactions for fully depreciated vehicle after selling
Hi there,
1. I bought a VAN for business on 21 January 2019 for $9000 from someone. I fully depreciated it as an instant assest write off in the annual tax return 2018-19. Now I have sold the vehicle to someone on 2.12.2020 for $5500. The buyer has deposited $100 as advance payment and rest of the amount he paid by cash.
2. After selling the vehicle I also paid the amont of $437 for registration and the buyer transfered the same amount into my account.
please guide how to record the transactions?
Kind Regards
Ravinder
Hi Ravinder
Do a general journal entry (tax inclusive/sale ticked) memo sale of van
Credit Other Income account-Sale of Capital Item $5,500
Debit Bank $100
Debit either Loan to Director/beneficiary/owners equity (depending on business structure) $5400
Do a receive money transaction to the bank account for $437 with memo- reimbursement of rego for van sold from purchaser and allocate to the same bank account, which will account for the withdrawal and deposit.