Fixed Asset Aquisition & Disposal of Part Ex - Give us a Clue!
Mendy
Registered Posts: 15 New contributor 🐸
Hi, can anyone help please? I can't get my head around the journal side of aquisition of a new fixed asset & disposal of the part ex. I've looked through my books, notes and passed papers but can't find a solution!
New van cost: £17600
Vat: £3080
RFL: £190
Part ex: £3500
Sundry Creditor: £17370
I'd put in my journal the van cost £17600 but was told this was incorrect because it was £14100. I've been stressing out over it ever since!
Thank you for any help!
New van cost: £17600
Vat: £3080
RFL: £190
Part ex: £3500
Sundry Creditor: £17370
I'd put in my journal the van cost £17600 but was told this was incorrect because it was £14100. I've been stressing out over it ever since!
Thank you for any help!
0
Comments
-
DR Van 17,370
DR Vat 3,080
DR Motor vehicle expenses 190
CR Sundry creditors 17,370
CR Disposals 3,5000 -
Whoever told you to put 14100 in you journal was wrong. The cost of the van is 17600 and that's what should go in the accounts. What you get from the part exchange is irrelevant to the valuation of the asset.
I think tallrodney made an error and it should be dr Van 17600 but the rest is right.0 -
Hi, this was on our devolved and was my only error. I did it exactly as you have both said but the £17600 was marked as incorrect and I have to redo another question in the same format to prove that I'm competent!:confused1:0
-
Hi, this was on our devolved and was my only error. I did it exactly as you have both said but the £17600 was marked as incorrect and I have to redo another question in the same format to prove that I'm competent!:confused1:
would you not just owe the sundry creditors 14100 as they have taken a vehicle worth 3500 as part exchange??0 -
No, you wouldn't owe the sundry creditor £14100 as there's vat & road tax on the invoice too, the total due to them is £17370. But thanks anyway!0
-
Hi, this was on our devolved and was my only error. I did it exactly as you have both said but the £17600 was marked as incorrect and I have to redo another question in the same format to prove that I'm competent!:confused1:0
-
if your disposing of a vehicle dont you have to credit the vehicle cost account that amount too?? and all the acc depn??0
-
Yes, but the question doesn't ask you to do that or give you the information needed, all it tells you is the amount you get in part exchange. You would in this case assume that the entries for the disposal have already been done0
-
I would be tempted to make 2 separate entries to the vehicle cost account
DR Vehicle Cost £14100
DR Vehicle Cost (p/x allowance) £3500
I'm doing FRA at the moment and we always make 2 entries if there is a p/x allowance.
But by the looks of this question so far, i'm aware this may not be correct....!!0 -
Yes, but the question doesn't ask you to do that or give you the information needed, all it tells you is the amount you get in part exchange. You would in this case assume that the entries for the disposal have already been done
aah ok...im not very good on these so i always draw my t accounts...i managed to pass it in my skills test by doin it that way :001_smile:0 -
-
I think I may have sussed it out! Sorry, but you are given the cost of the disposal and its accumulated depreciation! The cost was £14000 & AD £10976.I think it should be:
DR motor vehicle cost £14100.00
DR Vat £3080.00
DR Selling Expenses £190.00
CR Sundry Creditors (£17370.00)
DR Motor vehicle cost £3500.00
CR Disposal (£3500.00)
DR Accum Depc'n £10976.00
DR Disposals £3024.00
CR Motor Vehicle Cost (£14000.00)
Phew, hope that's now right!0 -
I think I may have sussed it out! Sorry, but you are given the cost of the disposal and its accumulated depreciation! The cost was £14000 & AD £10976.I think it should be:
DR motor vehicle cost £14100.00
DR Vat £3080.00
DR Selling Expenses £190.00
CR Sundry Creditors (£17370.00)
DR Motor vehicle cost £3500.00
CR Disposal (£3500.00)
DR Accum Depc'n £10976.00
DR Disposals £3024.00
CR Motor Vehicle Cost (£14000.00)
Phew, hope that's now right!
haha thats makes more sense now....thought there would be some acc depn in there somewhere as it is a part exchange
:001_tongue:0 -
sorry i don;t understand it. i am doing what you did but focus on cost and disposal
. i don;t know why AAT will n ot provide us T accounts very visual rather than text.
cost
bal £14100./
P.E £3500/14000
bal now 576?
disposal
3024? ........./P.E 3500
where from?../
14000..........
is that what you mean in text above?0 -
I think I may have sussed it out! Sorry, but you are given the cost of the disposal and its accumulated depreciation! The cost was £14000 & AD £10976.I think it should be:
DR motor vehicle cost £14100.00
DR Vat £3080.00
DR Selling Expenses £190.00
CR Sundry Creditors (£17370.00)
DR Motor vehicle cost £3500.00
CR Disposal (£3500.00)
DR Accum Depc'n £10976.00
DR Disposals £3024.00
CR Motor Vehicle Cost (£14000.00)
Phew, hope that's now right!
Yeh i thought there would be 2 debit entries in the vehicle cost account. I really hate p/x's!!0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 156 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership