Not sure if this will help Rachael, but I think your HP creditors should be 64,895 which means you're 11300 adrift which is the deposit amount. Not sure where you credit that to (bank?)

The thread you want is "is there anyone who can check my journal for a part exchange asset please" - and until I looked for it now, I didn't know you'd replied! (This is a problem with the oddly low list of recent posts in the RSS feed - it's too easy for a post to appear and disappear again in the feed, with more posts being made while my computer is off/disconnected - for example, when I'm travelling.)

Anyway, back to the plot:

In that thread you said the disposed asset was "bought for £21,600 NO VAT" and now you're saying it didn't cost anything. :/

As an aside from anything else, please tell me where I can get a free asset worth that amount of money - it might be a type of plant and machinery I have no direct use of, but I'll happily sell it once I have it. :)

The other part that threw things out was that £11,300 deposit, which you didn't mention in the original query. My assumption was that the finance amount - that I'd worked out as £67,895 based on your figures - was net of interest, but it now looks as though that included the £8,300 interest. (So it was incorporated in the credit side of your journal after all - I still think that's an odd way to do it, but horses for courses.)

So, with your revised/complete figures, your new journal is more or less correct - subject to two things I can see.

One possible problem is that the amount you're crediting to the HP account has suddenly leapt up - by the amount of the deposit. However, if the deposit is shown as a payment debiting the HP account, that makes sense, so it's okay, and not a problem at all. (Edit: I see you've actually confirmed this in your subsequent reply to John.)

The other issue is the final two lines, which is what you are questioning anyway. Those lines were to remove the cost of the disposed asset from fixed assets and move it to the P&L against the proceeds. Since the cost was nil, those two lines aren't needed.

In fact, if they were needed, those two lines would be the other way around anyway - you'd be crediting fixed assets (to move the cost out) and the other side would be the debit to the profit/loss on disposal account into which the disposal proceeds had been posted.

To sum up, your journal should now look like this:

(Apologies if my account/line wording differs - I noted down your numbers on a piece of paper before replying, but not your choice of wording.)