Hi,
I am trying to account for a vehicle we had to purchase from a customer due to faulty workmanship, the vehicle ended up being scrapped.
Any ideas how to do this please?
Many Thanks
Not a qualified accountant so this has limited utility (in other words, don't listen to me), but my suggestion:
Purchase value
CR Bank DR Motor vehicles
Scrap value (provided the scrap value was 100% cash)
DR Bank CR Motor vehicles
Purchase value - Scrap value (i.e. your loss)
DR Not sure, looking through my charts I see capital gains, if you DR this account that shows that you made a loss on the sale of the asset?
CR Motor vehicles
Not a qualified accountant so this has limited utility (in other words, don't listen to me), but my suggestion:
Purchase value
CR Bank DR Motor vehicles
Scrap value (provided the scrap value was 100% cash)
DR Bank CR Motor vehicles
Purchase value - Scrap value (i.e. your loss)
DR Not sure, looking through my charts I see capital gains, if you DR this account that shows that you made a loss on the sale of the asset?
CR Motor vehicles
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