Sale of an Asset with a profit and finace journal

What is the journal I post?

Didn't find your answer?

Hi,

I will bullet point my question so its easier to read, I need to check/know the jounral entry for the sale of a vehicle which had outstanding finance and sold for a higher value than purchase.... TIA

Brought  vehicle for £83,000 +VAT  

Sold for £94,950 + VAT @ 18,990 (113,940)

= profit 11,950.00

outstanding finace 65,491.37

balance paid to us 48,448.63

Replies (19)

Please login or register to join the discussion.

RLI
By lionofludesch
16th Aug 2023 13:48

Any depreciation ?

Is it a trade transaction or what?

Thanks (0)
By Ruddles
16th Aug 2023 13:51

Has the asset been depreciated?

I could give you certain parts of the journal but without depreciation figure not the full picture.

EDIT: Lion beat me to it.

Thanks (0)
avatar
By MONEYPENNY82
16th Aug 2023 14:23

Hi,

We can ignore depreciation at this point, thank you.

Thanks (0)
Replying to MONEYPENNY82:
By Ruddles
16th Aug 2023 14:25

No we can't. If you want the full journal entry we need to know the depreciation.

The fact that you think that we can might explain why you need help with what is very basic accounting.

Thanks (0)
avatar
By MONEYPENNY82
16th Aug 2023 14:26

What I mean is you can ignore the depreciation.

Thanks (0)
avatar
By MONEYPENNY82
16th Aug 2023 14:27

It has not been depreciated.

Thanks (0)
Replying to MONEYPENNY82:
Stepurhan
By stepurhan
16th Aug 2023 16:18

Why did you originally say depreciation could be ignored?

Is this a study question where the question included that statement but you left it out because it would have made it be too obvious?

If so, you are not doing yourself any favours not even attempting an answer.

Thanks (1)
paddle steamer
By DJKL
16th Aug 2023 14:47

What is vat recovery position upon purchase?

Why is vat being applied on sale, is this a commercial vehicle?

Thanks (3)
Replying to DJKL:
avatar
By MONEYPENNY82
16th Aug 2023 15:06

Yes it is a commercial vehicle. The invoice hasn't been raised yet.

Thanks (0)
avatar
By Tom+Cross
16th Aug 2023 14:49

If you're 'checking' what are your (journal) entries?

Thanks (2)
Replying to Tom+Cross:
avatar
By DKB-Sheffield
16th Aug 2023 15:01

+1

Post your suggested entries and we can maybe assist.

We don't know your software but, usually where VAT is concerned, a VAT invoice may have taken care of the vehicle sale and VAT side (which would change the journal signigicantly).

Thanks (1)
Replying to Tom+Cross:
avatar
By Leywood
16th Aug 2023 15:18

+1.

A please might help too.

Thanks (3)
Replying to Leywood:
avatar
By MONEYPENNY82
16th Aug 2023 15:22

The original post says "TIA" aka Thanks in advance...?

Thanks (0)
Replying to MONEYPENNY82:
avatar
By Tom+Cross
16th Aug 2023 16:11

So, (FOI) where's your draft journals?

Thanks (3)
avatar
By Kaylee100
16th Aug 2023 17:51

What type of vehicle?

What business and what was the vehicle used for?

If its a car, what is the VAT status of the transaction and business?

Thanks (0)
Replying to Kaylee100:
RLI
By lionofludesch
16th Aug 2023 18:21

Kaylee100 wrote:

What type of vehicle?

What business and what was the vehicle used for?

If its a car, what is the VAT status of the transaction and business?

He says it's a commercial vehicle.

Thanks (0)
Replying to lionofludesch:
avatar
By Tom+Cross
16th Aug 2023 20:19

Could be a John Deere?

Thanks (0)
Replying to Tom+Cross:
Routemaster image
By tom123
17th Aug 2023 09:31

I vote for a combine harvester.

I always wonder when people say "journal". As a PP has said, there will have been a sales invoice, somewhere, and purchase invoice, somewhere, and some matching bank transactions.

I guess I would also use a journal to record gains and losses on disposal or something.

Thanks (0)
Replying to tom123:
RLI
By lionofludesch
17th Aug 2023 09:50

tom123 wrote:

I vote for a combine harvester.

I always wonder when people say "journal". As a PP has said, there will have been a sales invoice, somewhere, and purchase invoice, somewhere, and some matching bank transactions.

I guess I would also use a journal to record gains and losses on disposal or something.

I know what you mean. The clients I had were basically working off a cashbook, so the payment was already there. The journals were needed to gross up for HP loans, part excanges and the like.

Thanks (1)