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micjrvs
April 28, 2020
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Does anyone know how to enter a part exchange when buying machinery from a dealer? do i make a journal entry?

  • April 28, 2020
  • 2 replies
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Best answer by KlentB

Hi there, micjrvs.

  1. I'd encourage seeking help from your accountant to know that what's the best way of handling it according to the nature of your business and avoid discrepancies in your records.

Do you have any other questions in mind? Feel comfortable to leave them below and I'll get back to you as soon as I can.

2 replies

KlentB
KlentBAnswer
April 28, 2020

Hi there, micjrvs.

  1. I'd encourage seeking help from your accountant to know that what's the best way of handling it according to the nature of your business and avoid discrepancies in your records.

Do you have any other questions in mind? Feel comfortable to leave them below and I'll get back to you as soon as I can.

paul72
paul72
May 1, 2020

Hi @micjrvs 

 

Really, you should raise an invoice for the item your 'selling' to the dealer then contra the p/x against their invoice.  Otherwise the asset is still on your books & your accountant will have to adjust at year end.

 

Receive their 'payment' into a dummy bank account = Contra.

Part pay their invoice using the balance in Contra.

Pay remainder from usual Bank Account in QBO.

 

Hope this helps.

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