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vehicle loan on balance sheet

How should a vehicle loan appear on balance sheet? I currently have the vehicles appearing as fixed assets and as a negative number. Then under liabilities the vehicle loans also show us as a negative number. Are the categories correct?  which category should be the positive number?

Fixed Assets
Truck 1   -24,280.02
Truck 2  -17,100.00
Truck 3   -28,900.00
Total Fixed Assets $ -70,280.02
TOTAL ASSETS $ -57,233.49
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Other Current Liabilities
Loan Payable Truck 1  -26,927.37
Loan Payable Truck 2 -18,393.27
Loan Payable Truck 3  -30,061.75
Loan Payable Truck 4
4 Comments
Established Community Backer ***

Re: vehicle loan on balance sheet

My guess is that all of these entries have been made 'backwards' - probably using Journal Entry.

The fixed asset is usually bigger than the loan - and of course all should be positive numbers.

If it was done by JE then go back and check - probably reversing the asset and liability account numbers will create the correct entries.

However - JE isnt the best way to make these entries.  If you buy a vehicle then the should be a vendor bill. 

Established Community Backer ***

Re: vehicle loan on balance sheet

Let's review:

 

Having the vehicles are Asset Values; that is Basis or original cost and that doesn't change over time and is a Positive. Such as, I list that I just paid for the vehicle on the Check or Credit Card Charge would show as Positive Asset value.

 

Having debt also needs to show Positive, because this program shows "regular perspective" for the account Type. So, the Loan is also positive. Example:

 

I deposit $10,000 to Checking as from the loan proceeds, so now Loan shows positive $10,000 is owed. Then, I enter that I bought the Fixed Asset.

 

When I make payments against the Loan, its balance goes down. The Fixed Asset doesn't change.

 

If someone used Journal Entries, it looks like this:

Debits increase Assets and Credits Increase Liabilty

 

Debit Vehicle Fixed Asset 10,000

Credit Loan liability 10,000

 

You can look at the entries in these accounts to figure out what went wrong and fix them.

Active Member

Re: vehicle loan on balance sheet

Thank you - your answer makes sense.  So I go into my journal entry and reverse the entries to make them positive numbers and I am getting the error message that I need to offset with a debit. 

So if :

my vehicle is a fixed asset (positive number)

my loan is also a positive number

What should my debit entry look like?  

 

Thank you again

Established Community Backer ***

Re: vehicle loan on balance sheet

There is either positive and negative, or debit and credit:

"my vehicle is a fixed asset (positive number)

my loan is also a positive number"

 

Loan would be the error, then; the Accounting balances in the chart of accounts and the Reporting should show Positive. You should have Two Columns. Do not put Both in One Column. One is Debits, one is Credits, both as Positive.