Sale of Building - General Journal Entries

Discussion in 'Quickbooks' started by Richard Faulkner, Jul 29, 2004.

  1. Hi,

    I have looked through previous posts on Google and cant find anything
    which answers my query.

    In March I sold a building for £150,000

    There was a loan of £23893.33 and solicitors fees of £1036

    The fixed asset account shows:

    Purchase price £37,500
    Various expenditures £21442 (including the above solicitors fees)

    How do I create a general journal entry which pays off the loan and
    fees, produces a gain, and puts the balance in my bank account?

    I am guessing that there may be one set of entries which deals with the
    actual movement of the monies, and another which deals with the gain?

    Using QB 2004

    Many Thanks
    --
    Richard Faulkner
     
    Richard Faulkner, Jul 29, 2004
    #1
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  2. Richard Faulkner

    Tee Guest

    From my method of recording home sales for my clients who are general
    contractors in the US:

    Income account for Sold Property to start

    Entry would look like:

    Sold Property: $150,000
    Loan: -$23,893.33
    Fixed Asset Acct: -$58,942.00
    Balance = $67,164.67 (what goes into the bank as profit)

    You should do this from the deposit screen. If you've already deposited the
    money you can double-click the deposit to open it. The balance will be what
    went into the bank but you'll be accounting for everything on the sales
    contract / closing statement.

    --
    Tara
     
    Tee, Jul 29, 2004
    #2
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  3. Richard Faulkner <> wrote in message news:<>...
    > Hi,
    >
    > I have looked through previous posts on Google and cant find anything
    > which answers my query.
    >
    > In March I sold a building for £150,000
    >
    > There was a loan of £23893.33 and solicitors fees of £1036
    >
    > The fixed asset account shows:
    >
    > Purchase price £37,500
    > Various expenditures £21442 (including the above solicitors fees)
    >
    > How do I create a general journal entry which pays off the loan and
    > fees, produces a gain, and puts the balance in my bank account?
    >
    > I am guessing that there may be one set of entries which deals with the
    > actual movement of the monies, and another which deals with the gain?
    >
    > Using QB 2004
    >
    > Many Thanks



    To record the sale of building giving effect to the pay off of the
    loan and fees you can pass the following journal entry.
    Debit Bank A/C by £ 125070.67
    Debit Solicitor Fees Payable A/C by £ 1036.00
    Debit Loans Payable A/C by £ 23893.33

    Credit the fixed asset account
    Purchase price £37,500
    Various expenditures £21442

    Credit Gains on sale of Asset A/C by £ 91058
     
    Mike Block, C.P.A., Jul 30, 2004
    #3
  4. In message <>, "Mike
    Block, C.P.A." <> writes
    >Richard Faulkner <> wrote in message
    >news:<>...
    >> Hi,
    >>
    >> I have looked through previous posts on Google and cant find anything
    >> which answers my query.
    >>
    >> In March I sold a building for £150,000
    >>
    >> There was a loan of £23893.33 and solicitors fees of £1036
    >>
    >> The fixed asset account shows:
    >>
    >> Purchase price £37,500
    >> Various expenditures £21442 (including the above solicitors fees)
    >>
    >> How do I create a general journal entry which pays off the loan and
    >> fees, produces a gain, and puts the balance in my bank account?
    >>
    >> I am guessing that there may be one set of entries which deals with the
    >> actual movement of the monies, and another which deals with the gain?
    >>
    >> Using QB 2004
    >>
    >> Many Thanks

    >
    >
    >To record the sale of building giving effect to the pay off of the
    >loan and fees you can pass the following journal entry.
    >Debit Bank A/C by £ 125070.67
    >Debit Solicitor Fees Payable A/C by £ 1036.00
    >Debit Loans Payable A/C by £ 23893.33
    >
    >Credit the fixed asset account
    >Purchase price £37,500
    >Various expenditures £21442
    >
    >Credit Gains on sale of Asset A/C by £ 91058


    Many thanks Mike.

    --
    Richard Faulkner
     
    Richard Faulkner, Aug 1, 2004
    #4
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