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Asset sale and Re Finance

ereidereid Feels At HomeRegistered Posts: 28
Hi

Hope you can help?

Asset bought £8,000

Finance £10,000

Balance £2,000 for asset improvements.

Asset sold - it required a Sales invoice for Finance company

for £10,000 with got posted incorrectly to 4200.

The 2300 code is correct now but I have the £2000 dilema as its debit will be to 0050 and I am out then with the Credit?

Two transactions proved one too many! the asset was not purchased from the Finance company initially either it was on the Purchase Ledger.

Hope someone can help and decyper
thanks

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Not enough info, did try and work it out but can't on the info provided.

    Get some paper and draw some T accounts, always helps me to work these things out.

    The capitalised costs of the asset will have been credited from the asset account and debited to the Disposals account, or should have been.

    Any difference on sale goes to the P&L
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    The £2,000 could go to an Asset improvement nominal code?
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