Car exchange discount

A/c entries 767 views 2 replies

If i buy new car and get further discount if i sell old car to the dealer, does this discount reduces the cost of new asset or increases the selling price of old vehicle

Replies (2)

AT THE TIME OF SELL

1. PARTY A/C DR. xxxxxx

  TO CAR CR.      xxxxxx

AT THE TIME OF RECD PAYAMENT THROUGH PARTY

1. PARTY CR. xxxxxxxxxx

    BY BANK / CASH  xxxxxxxxxx.

 

AT THE TIME OF PURCHASED NEW CAR.

CAR A/C DR. xxxxxxxxxxxxx (FULL AMT)                                                       

TO DISCOUNT RECEIVED CR.       xxxxxxxxxxx                   

TO PARTY CR.                                     xxxxxxxxxxx

 

AT THE TIME OF PAYMENT TO VENDOR

PARTY A/C DR. xxxxxxxxxxxxx (AFTER DISCOUNT)

TO BANK /CASH. 

 

OR

 CAR A/C DR. xxxxxxxx ( AFTER DISCOUNT AMT)

   TO PARTY xxxxxxxx

 

Hi

If you adjust the old car value as discount, then u will pass the following entry as

New Car A/c. Dr

Old Car A/c. Cr

Supplier A/c. Cr

 

 


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