Products Exchanged (Part Ex) No Cash

Discussion in 'Accounts & Finance' started by NEF, Oct 14, 2020.

  1. NEF

    NEF UKBF Regular Free Member

    162 8
    A customer of mine exchanged two used products for an Item I sell that was valued at £2000, no cash was parted.

    What is the best way to account for this, meaning for his receipt also as no cash value was put on the product as I did not receive any, just his two products that were exchanged in full for the new item I swapped..
     
    Posted: Oct 14, 2020 By: NEF Member since: Jan 14, 2008
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    16,477 3,486
    What you could do is issue a sales invoice for the goods sold and a credit note for the goods returned.
     
    Posted: Oct 14, 2020 By: Scalloway Member since: Jun 6, 2010
    #2
  3. STK Finance Limited

    STK Finance Limited UKBF Newcomer Free Member

    21 3
    Hey
    What is it you got from your friend? What will you use it for? Resale or something else? Is it an asset for you now (something you will continue to use in the business to generate cash)? If so you may want to credit sales and debit fixed assets...
     
    Posted: Oct 14, 2020 By: STK Finance Limited Member since: Sep 25, 2020
    #3
  4. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,098 899
  5. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,257 2,486
    You'll need to issue a sales invoice for the £2,000 and ask your customer to send you an invoice for the two products he sold to you.

    As mentioned do make sure all VAT is accounted for if either of you are VAT registered.

    You can then match the sales invoice against the purchase invoice in your accounting records. If you let us know what software you use for bookkeeping someone here should be able to explain exactly how this is done.
     
    Posted: Oct 15, 2020 By: MyAccountantOnline Member since: Sep 24, 2008
    #5