03-01-2007, 11:42 AM
Here's the problem. In 2003, we personally purchased a truck for cash. The intention was to sell it to our LLC. The truck was set up in the business as an asset with a loan (to be paid to us personally) and the accountant applied depreciation every year. Things have changed and the business can no longer afford to continue to purchase the truck. I asked the accountant how to remove it from the accounting. He wrote me and said "take out truck @ book - also take payments - JE - no cash" Bless his heart, he thinks I am much more savvy about this than I am. I worked with the removal of the truck and created a journal entry which covered the whole thing and brought the asset to a zero balance. Thanks to QB pro help! But that leaves the balance due of the loan hanging there as a Long Term Liability. I tried a JE against our "slush" loan to company (which tracks personal money used for business and business money used for personal) I could see that was not right. Since there was no sale, therefore no money received by the business for the truck, I am at a loss as where I should go with this. Any assistance from someone would be greatly appreciated. I have done a search in the forum and found wonderful information and answers, just not for my situation. Thanks in advance.