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Level 1

Purchased new vehicle, dealership paid off old vehicle, positive equity used as down payment

We purchased a new business truck, traded in old business truck, dealership paid loan liability for old business truck, had equity which was used as down payment.  How to enter all this new information?

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Level 7

Purchased new vehicle, dealership paid off old vehicle, positive equity used as down payment

You need a general journal entry.  See example below:

                                                                                                                     DR                      CR

New vehicle cost                                                                                    50,000

Old vehicle cost                                                                                                                   25,000

Accumulated depreciation                                                                  10,000

Old loan                                                                                                   15,000

New loan                                                                                                                              35,000

Gain/Loss on Disposal         - Whatever is needed to balance your transaction                                                                                              

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Level 1

Purchased new vehicle, dealership paid off old vehicle, positive equity used as down payment

That unfortunately did not answer my question.  Can someone help me?

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QuickBooks Team

Purchased new vehicle, dealership paid off old vehicle, positive equity used as down payment

Hi there, Bearcrazy5.

 

You'll want to create a barter account. It is used to post both sides of a traded transaction. You can follow these steps on how to set it up:

  1. From the List menu, select Chart of Accounts.
  2. Press CTRL+N on your keyboard to create a new account.
  3. Choose Bank and click Continue.
  4. You can enter Barter Account as the name, then click Save.

Also, another way to record this is through a journal entry. However, it's best to seek some help from an accountant so they can further guide with it.

 

Here are the articles for your reference: 

Keep on posting if you need more help with this. Stay safe!

 

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