Community Forum Portal/Portail du forum communautaire
In 2016 we traded a sprayer that we owned, no loan, on a sprayer with a lease. I need to get the old sprayer off my capital asset list. How do I do that and where do I show the value of the traded asset if anywhere?
Hi Neil, there are a couple of ways you can post that. Start out by entering a Withdrawal transaction for zero dollars. Fill out the top half of the window as you normally would. Then enter a C- line to dispose of the old sprayer and record the value of the traded asset.
After that you have a couple of options. If it's an Operating Lease then your next line will be Expense to balance the transaction and you can record. Future lease payments will also be Expense with the GST broken out according to your lease schedule. This is how most leases are posted and is generally preferred by the accountant even if it's a Capital Lease.
If it is a Capital Lease, you can do a different entry but may prefer to check with your accountant first. The Capital Lease entry would be C+ to record the value of the new sprayer and then a 3rd line as L+ to record the total lease obligation.
You may find the following Knowledge Base article helpful. http://community.fccsoftwar...