Z
Zimlo200
Guest
Marvon plc owns the following cars on 1 april 2006:
Car1 bought at 1 oct. 2003 cost $8500
On the 30 of june 2006 Car1 was traded in and replaced by Van1. The trade-in allowance was $5000. Van1 cost $15000 and the balance due (after deducting the trade in allowance) was paid in cash and partly by a loan ($6000) from TommyWorks Plc.
How does one record this in the books of accounts. Please show the account names, debit/credit entries etc. Follow below format for ease of explanantion.
Cash a/c Dr. $XXXXX
Bank a/c Cr. $XXXXX.
Thank you!!!
Car1 bought at 1 oct. 2003 cost $8500
On the 30 of june 2006 Car1 was traded in and replaced by Van1. The trade-in allowance was $5000. Van1 cost $15000 and the balance due (after deducting the trade in allowance) was paid in cash and partly by a loan ($6000) from TommyWorks Plc.
How does one record this in the books of accounts. Please show the account names, debit/credit entries etc. Follow below format for ease of explanantion.
Cash a/c Dr. $XXXXX
Bank a/c Cr. $XXXXX.
Thank you!!!