Car Rental Accounting
KARANPT
Member Posts: 3
Is this software good for car rental. Will the cars be products? How to show payments to be made to the bank in equal monthly installments.
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Comments
@KARANPT,
Wave would be fine for your line of business. However, when you purchase an asset partially funded with cash and debt, you will need to create a journal entry to post the loan. So for example, let's say I purchase a vehicle that I will rent out. The cost is 15k. I will male a down payment of 3k with business funds and finance the rest. On the transaction journal you would expect to see 3k from the cash account. That should be categorized as Vehicles under Assets/Property Plant and Equipment. You will need to create that if you haven't already. Next step would be to post the loan. You would debit the asset Vehicle and credit a loan payable. The loan payable would also need to be set up under the liabilities. The entry would be debit vehicles 12k and credit loan payable 12k. Now my asset Vehicle is 15k (3+12) and I have the correct loan at 12k.
Hope that helps.
Mike, but do i use the car license plates as the product id. I want to know the dp i paid for each car
@KARANPT,
You can either set up a separate asset with a tag after the description, like Vehicles- BPZ-4A3 or you can set up a separate schedule in excel to track each one which in turn agrees back to the Vehicle account. Typically, when the tax return is done, the depreciation schedule that supports the assets will have each asset separately as well. If you plan on having a bunch of vehicles, the separate approach on the balance sheet, the number of accounts could get voluminous. Keep me in mind if you are looking for assistance to get you set up correctly and comfortable driving on your own.