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My son traded my combine on a newer one . My combine worth 96000.00 on trade in . Do I sell mine and purchase a portion of the new one
Hi Wayne,
First make sure the old combine is in the system under the Setup menu > Capital Assets. Go to Transactions at the top of the screen and click on Transaction Entry. Select Withdrawal for your type and select the bank account the cash payment came out of (if no amount was withdrawn it doesn't matter what bank you pick and the total box will be left at 0). Select or Add the customer that represents the dealership or person/company you bought the new combine from. Enter a description, select a date and type in a reference number if desired. The Total box will be filled with the amount that came out of the bank account above. Again, if nothing came out, leave this at 0. Select C+ for the first transaction type line. Select Class 10 for the depreciation class account (I always recommend double checking this with your accountant). A window will popup where you can type in the make/model/description of the new combine, as well as the serial number and other important information. Fill this out, and when you get to the original cost box, subtract the taxes (if any) from the total cost of the new combine and use that amount as your original cost. Enter the taxes in GST and/or PST claimed fields as necessary. If there is a certain business % split, you can select the split percentage above and then select a personal drawings account to offset that portion to (if for instance you are splitting it with your son). I wouldn't worry about filling out the information below the PST paid field, but feel free if you would like to. Press Ok to get back to the transaction entry screen. Now you need to tab over and create a new entry line. Select C-, and select the combine you traded in and put $96,000 as the amount. If there was a loan for the remainder of the cost, tab over to create a new entry line and select L+. You might have to add a new loan account. If there were any administration or legal fees, tab over to create a new line and select EX. Select the appropriate account and enter the amount. At this point, your entry should be balanced, but depending on your specific situation the entry could be done differently. For instance, if your son needs to be reimbursed for your portion of the combine, or, if the loan went into your bank account first instead of directly to the dealership. If you have any questions at all I recommend giving us a call at 1-800-667-7893. These entries aren't complicated but it is certainly important we enter them correctly. Hope this helps!