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Hi, I hope I am explaining my question well enough. :) We farm with my 2 grown sons. Last year we bought a new auger and split the cost 3 ways. One of my son's share was 50%. I entered our share into our capital assets and made a note of the breakdown for the 3 of us. Our share of the purchase was $10,000.
Ok moving on to this year... my son wanted to sell his share of the auger for $14,000, and so we bought it. My problem is that I don't know how to record this transaction. I already have an asset recorded for the auger(with our share) but how do I record the $14,000 into that asset? (make sense at all?) If I sell the asset for $10,000 by way of doing
deposit $10,000 and sale of capital asset C- then I have a credit $10,000 showing in our bank account without actually funds deposited. Is that what I would do? And then would I enter a transaction for the entire portion of our asset i.e. bank account debited for $24,000 and new entry for the capital asset at $24,000? Just not sure how to proceed. Thanks for any help.
Hi Kathleen,
My suggestion in this case would be to do a transaction where you are selling your asset C-, but also doing a re-purchase C+ at the same time for the total amount that you now own of the auger. If there is money coming into your account for the purchase of your son's share, I would put that into the total of the transaction ($14,000), and then a C+ for 24,000 and C- for ($10,000) line which should make things balance out with the sale and re-purchase for the total value price ($24,000). If you have questions, please contact us 1-800-667-7893. Thank you.