Does anyone know how to record this journal entry? I'm a bit confused because it's a trade-in and not a sale or disposal.
"On 1st February 1999 Chester PTy Ltd acquired new painting equipment. The purchase involved the trade-in of the old painting equipment which had a recorded cost of $25,000 and accumulated depreciation to date of $21,000. The trade-in reduced the cash to be paid from the listed price of $35,000 to $32,000, which was paid out of cash at bank"
Ta!
"On 1st February 1999 Chester PTy Ltd acquired new painting equipment. The purchase involved the trade-in of the old painting equipment which had a recorded cost of $25,000 and accumulated depreciation to date of $21,000. The trade-in reduced the cash to be paid from the listed price of $35,000 to $32,000, which was paid out of cash at bank"
Ta!