journal entry

Hi darinsquared.

Being able to account for the cost of different items and knowing how to enter them is the cornerstone of accounting. I'd be happy to point you in the right direction for this.

In order to know how to enter your equipment's value and what the total amount is I recommend reaching out to an accountant as they're trained in how to make these entries. If you don't have an accountant no worries, we can help. You can go to our Find an Accountant page to find one in your area.

If you have any questions let us know and we'd be happy to help.

This is a multi-step process:

1) Create a Sales Receipt for the full amount of Equipment being traded, made out to the business you are purchasing the new equipment from. Deposit the funds to a Bank type account called Clearing, or Barter, or whatever makes sense to you.

2) Open your Fixed Asset Item List, select the Old Equipment and complete the Sale details. Step 1 & 2 remove the equipment from your Fixed Assets.

3) Record the Vendor Bill for the new equipment for the FULL Value, using the Fixed Asset Account.

4a) Pay part of the bill from the Clearing Account (no funds actually change hands)

4b) Pay the balance from your regular chequing account (record the cheque you wrote)

5) open the Fixed Asset Item list and complete the Purchase details

That should do it.