sir,
new vehicle selling price= 190000
old vehicle taken as exchange price=50000
additional cost incurred on old vehicle =5690
old vehicle sold =62000
please provide accounting entry for exchange on the same for vehicle dealer
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Acounting entry for exchange of vehicle for vehicle dealer
Replies (5)
For additional cost for old vehicle the entry will be Old vehicle a/c Dr
To Bank/cash a/c
For exchange of vehicle: New vehicle a/c Dr ( with new vehicle price)
To Old vehicle a/c (with old price)
To Dealer a/c or Bank a/c( balance amount)
For exchange of vehicle:
What will be the Old vehicle amt.
Nd wht abt the old vehicle selling price
We don't book unrealised gain (conservatism principle). So if "old vehicle sold = 62000" is expected selling price then it is to be ignored.
However if that is carrying amount (i.e. cost - depreciation) and in reality old vehicle was exchanged for lesser value then, difference would be loss on exchange.
Dear Sudha
1:- Purchaser A/c Dr. 140000
Old vehicle A/c Dr. 50000
To New Vehicle Sale 190000
2:- Old Vehicle Dr. 5690
To Cash/ Bank
3:- Vendor/Cash/Bank Dr. 62000
To Old Vehicle 55690
To P/L. 6310
vehicles should be treated as stock for vehicle dealer.add exp charged to p/l acc. .
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