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-drockhomes-com
June 5, 2024
Question

Deposit

  • June 5, 2024
  • 1 reply
  • 0 views

My boss got a 20,000 check deposited for the sale of a property.  I don't know how to record this deposit.  I know the one side is the bank account but what is the other side?  There is no asset account for the property so I am not sure what the other side of the journal entry should be.  Can someone help me with this?

1 reply

Rainflurry
Rainflurry
June 6, 2024

@-drockhomes-com 

 

When you say "property", you mean real property, yes?  Is this land?  Was the property owned by the company or your boss personally?  If it was owned by the company, did the company pay for it?  It sold for only $20K so is it possible your boss traded for it or was given the property somehow?       

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-drockhomes-comAuthor
June 7, 2024

This is a rental house that got sold. It was owned by the company. The company didn't pay for it there was a loan but the loan was defaulted on and closed.  Nothing was traded or given in exchange.

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