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Part Exchange of a Vehicle

Cactuspip
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  • 7 posts
  • # 120711

A client had a piece of earthmoving equipment. They traded it in part exchange for a new machine. They then paid the difference in value to the equipment supplier.

The old machine was valued at £10,000. The new machine at £17,000. There was a cash payment of £7,000 for the balance.

How do I represent this in Xero?
  • Member
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  • 16 posts
  • # 120733

Hi Philip

I presume you are using the Fixed Asset module in Xero?

The original asset will need to be disposed with the gain/loss and proceeds going to specific accounts.

Then I would do a separate cash transaction of 7,000 for the new asset debit 17,000 asset a/c, credit 10,000 proceeds.

 

 

Thanks

Terry

 
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