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September 5, 2024
Question

How to zero out a car loan and add a new one

  • September 5, 2024
  • 1 reply
  • 0 views

I have two vehicle loans set up at Notes Payable, and both also shown as assets under our CoA.  I traded both vehicles in for one new one.  I cannot figure out how to zero out the loans and assets so it shows up correct on our reports, and how to add the new asset and loan.  No depreciation was taken.

 

Any help is appreciated!  

 

Thanks! 

1 reply

BigRedConsulting
September 5, 2024

If the new loan paid off the existing loans, then...

Establish the new loan's starting balance by creating transfer transactions from it to the old loans to pay then off. And also a transfer to the asset account that tracks the new car, for the price or value of the new car that the loans covered.