27 October 2009
i have a query mr. a had sold his car to mr.b and as per sale agreement,mr. b will repay the loan taken to purchase the said car.value of car on date of sale is 724170/-. loan amt. outstanding on the same date is 413817/- please suggest the accounting entries for the same.. thanks and regards
27 October 2009
Car Loan Dr 413817 Loss on sale Dr 310353
To Motor Car Cr. 724170
Be sure you got the depreciated value of the car and loan outstanding balance correct and if there is any amount receivable fron Mr. B that has to be accounted for.
28 October 2009
hello mr.sanjay thanks for replying in the query mr. a is sole prop. the dep.value of car is 724170/- the loan amt. is 413817/-payable on the date of sale; the purchaser(mr.b) had paid the car loan and taken the car from mr. a mr.b also paid rs. 20000/- in lieu of insurance of car.(the insurance has been done one month ago by mr.a) could the loss be adjusted in his capital a/c
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