Hi all,
My accountant has given me the following information on how to enter the sale of my vehicle and clear out the business loan ect as per below. But I am absolutely stumped on what he means! I'd rather try and confirm my solution is right with him than ask him how to do it but I just can't figure it out!
If someone can help me I'd really appreciate it! Presuming this is all goiing in one journal entry?
Thank you so much, Cass!
- Please code the $18k sale to an Other income item called “Profit / Loss on disposal of non-current assets” and make sure you pick up the GST on it.
This is ok I think - I'd just enter $18,000 in the account mentioned into DEBIT?
- The payout to Esanda for $15k will just be coded against the Esanda car loan liability account.
I'd just enter $15,000 in the account mentioned into CREDIT?
- You’ll then have to clear out the Unexpired interest charges against the Esanda Car loan liability account.
What does he mean by 'clearing out the accounts against the other'? I currently have nil Unexpired interest charges but if I run a report for December 2016 it shows $7,296.22 for this account.
The current liability in Esanda Car Loan is $13,692.63.
- There will be a balance in the Esanda Car loan liability account (this balance is $13,692.63), clear this balance against the expense account called Motor Vehicle interest. This amount will represent the interest for the year and break-costs etc.
I don't have a 'Motor Vehicle Interest' account, only a 'Motor Vehicle?
You’ll then have to transfer the Motor Vehicle asset and Accumulated depreciation negative asset to the same Other income account as above “Profit / Loss on disposal”. Make sure no GST is considered here in MYOB.
I have no “Motor Vehicle Interest” account, only Motor Vehicle? Should I create one?