Acounting entry for exchange of vehicle for vehicle dealer

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. .