Share this content

Purchase of Cars

Purchase of Cars

Our company had been leasing 3 cars on contract lease basis, the contract then came to an end. Instead of the lease company taking these cars back, they were then sold to the company for a total of £1500

How do i reflect this in the accounts ?


Please login or register to join the discussion.

By pn
09th Mar 2012 15:56

Purchase of Cars

 same as one would account for acquisition of a new car

Thanks (1)
09th Mar 2012 16:03

Finance or operating lease?

I would imagine it was an operating lease so all accounting entries to date have been:

Dr P&L

Cr Bank

The cars are now company assets, so

Dr Fixed Asset additions £1,500

Cr Bank £1,500

Thanks (1)
By biz2010
to HuntFord
12th Mar 2012 17:27


Yes it was an operating lease, just never come across this before.


Thanks for your help


Thanks (0)
Share this content