Recording a capital asset purchase financed by a dealer, with a trade-in

To record the purchase of a capital asset financed by a dealer, with a trade-in:

1. Select Transaction Entry from the Transactions menu. The Transaction Entry dialogue box opens.
2. Select Withdrawal from the Transaction type drop-down menu.
3. Enter the transaction Date.
4. Select the Bank account.
5. Enter a Reference to identify the transaction throughout AgExpert Analyst.
6. Enter a Description, such as the dealer name, or click the arrow to select a previously entered description.
7. Enter the Total net amount of the loan.
   
8. Select Capital Asset Purchase (C+) from the Type drop-down menu.
9. Select the applicable Account. The Add Capital Asset dialogue box opens.
10. Click Save. The Transaction Entry dialogue box opens. Enter the remaining transaction details. For example:

Next, record the loan. Since the loan account used in the transaction doesn’t exist in the Chart of Accounts, you have to set it up.  

1. Select the ellipses (…) next the Account field. The Select Postable Account – Loan dialogue box opens.
2. Click Add. The Add Account dialogue box opens. Enter the following:
3. Click Save.
4. Click Select to use the account in your transaction. The Transaction Entry dialogue box opens. Enter the remaining transaction details. For example:

You’ll need to record the trade-in as follows:

1. Select Capital Asset Sale (C-) from the Type drop-down menu.
2. Select the applicable Account. The Capital Asset Selection dialogue box opens.
3. Select the asset you’re trading in and click Select.
4. Enter a Memo, for example, trade-in double disk cultivator, and the amount.
5. The document should be balanced. To view the balanced debit and credit entries, click Recap. ClickRecord to record the document. 

The document should be balanced. To view the balanced debit and credit entries, click Recap. Click Recordto record the document. 

Last updated on August 31, 2016 by FCC AgExpert