Record equipment trade in against Loan

JeremyJeremy Member Posts: 4
edited October 2019 in Accounts Hosted
We recently purchased a new piece of equipment under finance, but we also traded in an old machine to go towards the purchase.

I went to put in a journal for the purchase of the equipment like this:

Dr  Plant & Equipment     GST on capital purchase

Dr  Borrowing Costs        No GST

 Cr  new loan account           No GST

Cr  Plant & Equipment  (TRADE IN)   GST on Sales

However, Reckon wont let me put in both sales and purchase on a journal entry, comes up with an error.

How do I enter this transaction?

Im using Reckon accounts Hosted

Comments

  • John GibsonJohn Gibson Member Posts: 47
    edited December 2017
    Two options - use the GST code on both debit and credit, instead of CAG on purchase and GST on trade-in - should work.

    Alternative for the Cr Plant & Equip assign with no code to Op Bal Equity, then 2nd entry Dr Op Bal Equity and Cr Plant & Equipment at cost account for the trade-in amount (with the GST code)

  • JeremyJeremy Member Posts: 4
    edited December 2017
    Thanks for your reply John,

    It didn't prompt me when I did the GST on both, but when i tried to do NO tax code on the other lines, it gave me the error again.


  • John GibsonJohn Gibson Member Posts: 47
    edited December 2017
    Leave the others blank, with no code listed at all.....

  • Preece MitchellPreece Mitchell Member Posts: 21
    edited October 2019
    Won't this throw out the BAS?
    How can you use a GST code for a purchase!
  • Preece MitchellPreece Mitchell Member Posts: 21
    edited October 2019
    A better way would be to do the journal entry for the purchase and leave out the trade in price and make the loan greater by this amount. Then do a separate journal entry to debit the loan account and credit the income account with the trade in. This way you can use one entry for CAG & another entry for GST.
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