I wondered if someone could help me get my head around this:
If I have a car that was purchased under the scheme at £4000 and sold for £6000 but along with this they took a car for £1000 as part exchange. Would my journal look like this?
Car sold credit £4000 t9
car sold credit £2000 t1 (this being the amount they need to pay tax on)
Px control ac debit £1000
Where do i post the other £5k in the debtors ac then credit that when the payment comes in?
What I do is the following on S/H margin vehicles - I never use journals as there is always a monetary transaction, whether in cash to the bank, or finance etc that can be used to account for it all and they over complicate it for me.
Purchase of the vehicle should already be in at £4000
Debit bank account with £6000 (£5666.67 + £333.33 vat) at T1 to vehicle sales account, £333.33 is vat on the £2000 profit.
Credit bank account with £1000 at T0 code for the p/ex to vehicle purchases account
Always add into your sales the full sales value and add your purchase in at the part exchange value, then both cars are being accounted for at their correct value.
The net effect of the 2 transactions is the actual amount that has been received = £6000 less the £1000 p/ex
