Hi, I am having trouble to figure out the impact of a disposal which was a HP asset?
I did the following entries in Sage50 Accounts when client acquired the asset:
Sage Code | Description | DR | CR |
0020 | Plant Addition | 55k | |
2201 | VAT | 11k | |
2310 | HP Creditor | 51k | |
1200 | Bank | 15k |
Now the client has sold the asset for £20k, it had an accumulated depreciation of £22k and the HP creditor balance at the date of sale was £18k.
What would be the correct entry to post in Sage50 Accounts also taking into consideration the VAT element payable to HMRC and how to clear off the HP Creditor balance in Sage.
Thanks
Replies (4)
Please login or register to join the discussion.
I am not sure what you are finding difficult. You just account for the transactions that have occurred, which you seem to have a good understanding of, except you don’t mention what happened to the HP liability on the sale of the asset.