Little bit of advice please ? Recently just part ex'ed some older kit for newer kit. from a supplier . I have raised an invoice for the sale value of my part ex kit to dealer Ie £650 .They have charged my credit card for the remaining value of the item they are supplying ,£500. They have supplied an invoice for £1150 , total purchase price of the new kit and mentioned the part ex value also. How do I reconcile all of this please ?
thanks,
Hi Jonathan,
From an accounting perspective a part exchange is simply a sale followed by a purchase. In your case the sale is for £650 and the purchase is for £1150.
If the kit is treated as an asset then record the sale and purchase as described here:
http://www.solaraccounts.co.uk/help/how-to-record-an-asset-purchase-or-sale.php
Otherwise if you want to record the sale and purchase as income and an expense then record Money Received and Money Paid Out transactions as described here:
http://www.solaraccounts.co.uk/help/how-to-record-a-cash-sale.php
http://www.solaraccounts.co.uk/help/how-to-record-an-expense.php
Regards,
