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victoriah1956
October 27, 2023
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Purchase of a new/used Business vehicle; with 2 types of down payments & financing of everything else

  • October 27, 2023
  • 1 reply
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I use QBDT Premier Plus Contractors' Edition 2022

At the risk of repeating a question, I'm trying to get a clear solution to these questions:

The purchase of a used business truck included:

1) a $10,000 "loan" from me to my husband for the majority of the downpayment for the vehicle

2) Hubby put $2,000 down, (for a total of $12,000 down).

3) I want to set up the $10,000 as a liability account as hubby is repaying it monthly, from the business       account . How would I record this in QBDT ?

4) In addition, the Bill of Sale has the Extended Warranty amount and the GAP insurance, sales tax, fees, etc. which was all financed with the vehicle loan.. Should these other items be categorized in the check (expenses) as well, when I record the purchase of the vehicle? 

 

I have set up Fixed Asset VEHICLES, with a sub account for the vehicle (2015 Chevy Silverado) (with a sub acct for Accumulated Dep), as well as the Long Term Liability Acct for the purchase loan (principle paid each month) and an Interest Exp account for the interest paid each month..

Best answer by BigRedConsulting

If you don't have them, create three accounts to track the purchase, named something like:

"Business Vehicle" - Fixed Asset account type

"Business Vehicle Loan" - Other Current Liability account type.

"Loan from my sweet wife"  - Other Current Liability account type.

 

Make an entry in the Loan account register for the amount of the loan, using the Business Vehicle account as the other account.

 

Make two entries in the Business Vehicle account, increasing the account balance, one for each down payment: His should use an Equity account, like Owners Equity, since he's adding money to the business, an increase to equity. Yours should use the Loan from my sweet wife account.

1 reply

BigRedConsulting
BigRedConsultingAnswer
November 27, 2023

If you don't have them, create three accounts to track the purchase, named something like:

"Business Vehicle" - Fixed Asset account type

"Business Vehicle Loan" - Other Current Liability account type.

"Loan from my sweet wife"  - Other Current Liability account type.

 

Make an entry in the Loan account register for the amount of the loan, using the Business Vehicle account as the other account.

 

Make two entries in the Business Vehicle account, increasing the account balance, one for each down payment: His should use an Equity account, like Owners Equity, since he's adding money to the business, an increase to equity. Yours should use the Loan from my sweet wife account.

V
victoriah1956Author
November 27, 2023

BigRed Consulting:  Thanks very much for the clear explanation to my question.  I am getting this entered today.  

 

Best,

VictoriaH

(aka "sweet wife")  LOL

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