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Reply from nelyf on Apr 26 at 5:34 AM Hi VidhyaDhar,
Thanks for your effort of purely understanding my query. I think my explanation is not quite clearly.
Event 02 : Your wanting to sell your asset to the same customer ( It is your asset and not your customer's asset, as yet......Right?!)
Answer: The customer is renting to us for office rental, they bought an aircon unit for their own used. Upon discontinuing renting to us, they decided to gave us aircon unit in a form of offsetting to their payable to us. In short, if they owe us $2,000.00 less a/c unit amounting to $1,000, the balance of their AP to us is $1,000.
How do we do entry for aircon unit? (we consider this as an asset). Is it possible to entry this in FI as OASV? Or we will create asset number?
Thanks,
Nely
| | | ---------------Original Message---------------
From: Vidhya Dhar
Sent: Wednesday, April 25, 2012 5:35 AM
Subject: Asset for Sale
Hi Nely
Please come again. Your requirement beats me, I must say ( forgive me for my poor understanding of the issue ).
Let us run through the scheme of accounting entries in your books to understand the issue better:
Event 01 : Customer owing money toward your rental income
Customer Account Debit $ 1000
Rent Income Account Credit $ 1000
Event 02 : Your wanting to sell your asset to the same customer ( It is your asset and not your customer's asset, as yet......Right?!)
Customer Account Debit $ 1000
Sale of Asset Account Credit $ 1000 <#> and
Clearing Account Debit $ 1000 <#>
Asset Account Credit $ 1000
Please note that I am ignoring profit / loss on sale of asset , accumulated depreciation etc....for want of information.
<#> denotes that the two accounts , upon asset retirement with revenue , would be shown as notes to the financial statement.
As far as my knowledge goes, the customer dues mount to $ 2000 ( viz. $ 1000 owed by them as rental dues and $ 1000 more on account of the sale of your asset ).
I do not understand what you mean by saying that "They want to offset our receivable to them in the form of an asset (aircon unit) left".
I thought that your customer owes you more than before and there does not seem to be anything to offset.
Or Am I not understanding your requirement ?
Regards
VidhyaDhar |
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