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micjrvs
April 28, 2020
Solved

Does anyone know how to enter a part exchange when buying machinery from a dealer? do i make a journal entry?

  • April 28, 2020
  • 2 replies
  • 0 views
No text available
Best answer by Klent

Hi there, micjrvs.

  1. I'd encourage seeking help from your accountant to know that what's the best way of handling it according to the nature of your business and avoid discrepancies in your records.

Do you have any other questions in mind? Feel comfortable to leave them below and I'll get back to you as soon as I can.

2 replies

K
KlentAnswer
Level 8
April 28, 2020

Hi there, micjrvs.

  1. I'd encourage seeking help from your accountant to know that what's the best way of handling it according to the nature of your business and avoid discrepancies in your records.

Do you have any other questions in mind? Feel comfortable to leave them below and I'll get back to you as soon as I can.

paul72
paul72
Level 6
May 1, 2020

Hi @micjrvs 

 

Really, you should raise an invoice for the item your 'selling' to the dealer then contra the p/x against their invoice.  Otherwise the asset is still on your books & your accountant will have to adjust at year end.

 

Receive their 'payment' into a dummy bank account = Contra.

Part pay their invoice using the balance in Contra.

Pay remainder from usual Bank Account in QBO.

 

Hope this helps.

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