Vehicles Account

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Working thru Osborne workbook Unit 5 Q 7.6 on part x of vehicle - need to show vehicle account.

I've made all the necessary entries disposal a/c part-x, bank etc but also included the new vehicle which replaces the old one.

However this obviously pushes up my bal c/d in excess of what is should be and they've not included the new car in the answer despite it being bought within the fiancial year.

Why is this?
Thanks,
Scooby


Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Vehicles Account

    the new vehicle bought doesnt go in the diposals account it just goes through the vehicle account and have you remebered to take the old veihcle out of the veichle accountdont hope that helps as im not sure what figures you've put in each a/c
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Vehicles Account

    Yes, I've transferred the old vehicle to the disposal a/c and entered the new vehicle into the vehicle a/c, but the answers in osborne only show the new vehicle as a c/d balance at the y/e to balance the account - but what happens to it it the meantime?

    I entered it into my vehicle account whilst moving the other to the disposal a/c, also took a/c of the bank, part-x, etc but obviously with the balancing of the a/c the b/d figure was higher than the value of the new car.

    I'm just confused as to why the answer did not have the new car in it and what you're supposed to do with the car value in the meantime?

    Cheers,
    Scooby
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Vehicles Account

    Mmmm not sure I get what you mean so maybe if I explain "stuff" and then see what you think.

    1) Start of the year youve got a debit balance on your fixed assets account cos youve got some assets and a credit balance on your accumulated depreciation because they have (youve guess it) accumulated some depreciation.

    2) During the year you buy a car for cash, the resulting entries are of course:

    Cr. BANK
    Dr. Fixed Assets: Vehicles.

    Now whether you charge any depreciation in that year is entirely on the depreciation policies of the business. Some do, some don't.

    3) If you sell a vehicle during the for cash then you create a disposals account and transfer the accumulated depreciation, fixed asset hiistoric cost and any disposal proceeds to it. i.e.

    Dr. Bank (with any scrap value you got)
    Cr. Disposals Account

    Cr. Fixed Asset Motor Vehicles
    Dr. Disposals Account

    Dr. Accumulated Depreciation
    Cr. Disposals Account.

    Again whether there is any depreciation in the year of disposal is entirely on the depreciation policies of the company.

    Does this help? If not you can slap the entire question on here if you want, I could do with revising depreciation.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Vehicles Account

    HI YOU SEEM TO KNOW YOUR STUFF ON THIS SUBJECT I HAVE A PROBLEM WITH A PURCHASE OF A NEW VEHICLE TOO.. I HAVE PUT THE SUPPLIER INVOICE ON AT PRESENT, BUT NOW HAVE TO CLEAR IT DOWN WITH THE HP (LOMBARD) COMPANY AND REALLY DON'T KNOW HOW, CAN YOU HELP

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