I bought a van a couple of years ago for £4500 (this figure is showing in motor vehicle 0050 account), this has just blown up . I have recently purchased a van for £7754 and the trader knocked me £500 off for by broken van (Part ex).
So i paid cash £7254
I have been looking at Sage and my accountants have not entered any depreciation for by broken van.
I think you might first want to ring your accountant and confirm that Sage is correct in showing no Accumulated Depreciation for motor vehicles. It may be that you have not received year end journals, or, it may be that the van depreciation has been included within the plant & machinery year end journal.
The £4500 should be moved via T9 journal to 4200 Sale Of Assets (credit 0050, debit 4200). The accumulated depreciation, when you have it, should be debit 0051, credit 4200. This creates a value for the old van - its net book value, which is being given as proceeds to the purchase of the new van.
Then you need to do a journal for the £500, debit Motor Vehicles, credit 4200 Sale of Assets. This correct the value of the new van in motor vehicles (£7254+£500 = £7754)
The result of this second journal also establishes whether a profit or loss has been made on the sale of the old van. Its usually a loss. A loss is a debit figure in 4200.
. I have recently purchased a van for £7754 and the trader knocked me £500 off for by broken van (Part ex).
