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M
MN88
May 20, 2021
Question

How do I record the purchase of a new vehicle with trade in?

  • May 20, 2021
  • 1 reply
  • 0 views

I have purchased a new truck valued at $57,405 before trade in and taxes but after applied discounts.

We traded a truck, recorded in vehicles, trade in value $28,000 as well as a personal vehicle valued at $15,000.

How do I record the new truck and remove the old one? How do I record the "personal" vehicle portion of the trade?

I am in Ontario.

Thank you for your help!

1 reply

A
Alex M
May 20, 2021

Hi there MN88,

 

Making sure that your transactions are entered correctly in your books is important. QuickBooks Desktop is a great tool to be able to keep track of your purchases to see the amount of money you've spent. I can point you in the right direction.

 

Since this is a transaction that is a little bit more complex, there is no built-in way to enter this transaction specifically. In this case, a General journal entry or another similar transaction type might be the key to getting this vehicle purchase and trade-in entered in your books. In order to have it affect your accounts correctly, I recommend speaking to an accountant. Their accounting knowledge as well as their understanding of best business practices will be able to guide you in choosing which accounts to affect and the best transaction type. If you don't have an accountant, you can find one with QuickBooks experience near you by visiting our Find an accountant page.

 

If you have any other questions, feel free to reach out here.

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