Selling Assets - step by step - Reckon Accounts Desktop Australia

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Roland
Roland Member Posts: 24

Hi Everone,

I have a newbie question.

Could someone please provide step by step procededure for achieving sale of assets?

I have read every help file and am still confused as to the correct procedure.

I don't have fixed assests set up as items. For example Motor Vehicle:

My Chart of Accounts has Motor Vehicle as the main account, with sub accounts of Accumulated Depreciation and At Cost. I understand how to find the current value.

I understand that I can create a Sales Reciept for the asset and recieve the payment against that sales reciept using Motor Vehicle as the account in the deposit slip.

Is this all I need to do, or do I also need to make General Journal entries?

PLease correct me if I have already mistaken the procedure.

Thanks in Advance,

Roland

Best Answers

  • Kris_Williams
    Kris_Williams Member Posts: 3,393 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    You can do either a sales receipt or a journal - sales receipt, create an item called Motor vehicle sale and link to the At cost account. Probably easier if you’re not familiar with journals. A sales receipt is all you need to do as that takes care of the payment at the same time.

  • Bruce
    Bruce Member Posts: 442 Professional Partner Professional Partner
    edited May 2022 Answer ✓
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    As a BAS (not Tax) Agent it is NOT for me to determine the depreciation journals.

    So I don’t attempt to process all the entries associated with the sale of a depreciating asset. All I do is record the sale using a Sales Receipt in an Other Income account that i call Sale of Assets and then leave the journals etc to the Accountant at year end as part of their tax work

    I know that this means any management reports are not 101% correct but in my experience this has not influenced any management decisions made during the year

  • Kris_Williams
    Kris_Williams Member Posts: 3,393 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    I don’t do any depreciation entries either, but I do post the sale to the At Cost account

  • Bruce
    Bruce Member Posts: 442 Professional Partner Professional Partner
    edited May 2022 Answer ✓
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    @Roland Kris' approach also works. Using a separate account or the original cost account should make it blindingly obvious to the accountant that something unusual has happened that requires attention

  • Kris_Williams
    Kris_Williams Member Posts: 3,393 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    The customer is the person to whom you sold the asset

    the new item will be Asset Sale, or M/v sale, something like that, the tax code will be GST and the account the item is linked to would be Plant & Equipment or Motor Vehicle asset account.

    This is how I do it, but there a number of ways, you can call me if you wish

    0415940843

  • Kris_Williams
    Kris_Williams Member Posts: 3,393 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    Service is fine or other charge

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,482 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    Just an FYI ... you need to hit 2 different areas with the process - Income AND the Asset - so it's best to use a Sales Receipt (to record the sale to the customer against a "MV Sale" Other Charge-type Item, linked to an Income account) & a GJ to record the Asset value reduction.

    Your tax agent will determine at EOFY the final figures to clear the Asset, as depreciation will be claimable up to the point of sale along with any balancing adjustment for capital gain (profit) or loss made 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)

Answers

  • Roland
    Roland Member Posts: 24
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    Thanks so much everyone. I have a positive direction to work with now.

    Roland

  • Roland
    Roland Member Posts: 24
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    Hi Everyone,

    I seem to have hit the wall on the simplest part of the instructions, the sales receipt. :)

    Firstly, what do I use for the Customer/Job entry?

    Secondly, my item list only contains work related items. I have tried to create a new item but not sure what to put in the fields on the New Item panel.

    Any thoughts would be greatly appreciated

  • Roland
    Roland Member Posts: 24
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    @Kris_Williams Thanks for the info, but I'm still stuck on the Item type in the dropdown list? It's not service or inventory or non-inventory .

  • Roland
    Roland Member Posts: 24
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    @Kris_Williams this is what I mean. None of the descriptions seem relevant to the task

    Thanks

  • Roland
    Roland Member Posts: 24
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    Awesome, thanks @Kris_Williams. I'm grateful for your patience on what must seem a ridiculously simple task.😂

    Thanks again.

    Roland

  • Kris_Williams
    Kris_Williams Member Posts: 3,393 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    No problem Roland, everything is easy when you know how, but there’s always a first that’s confusing, glad to be of help