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accounting for the difference?
05-14-2014, 03:10 AM
Post: #1
accounting for the difference?
Hello,
I have a company. the company did not buy a restaurant, it directly established a restaurant two years ago. During the two years, the company paid 30000$ for the equipment. Last month, the company sold this restaurant at 50000$. . in the contract, the notary noted 30000$ for the equipment and 20000 for goodwill.

the question is how the company make bookkeeping for this transaction?

thanks.
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05-16-2014, 08:11 AM
Post: #2
RE: accounting for the difference?
The entry would depend on a lot of factors.
Are you a sole proprietorship or a corporation?
Good will is recorded in the books of the purchaser.
In your case, the difference between your proceeds and cost is your income.
The cost of your equipment is also reduced by the CCA you claimed.
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07-17-2015, 01:50 AM
Post: #3
RE: accounting for the difference?
Wow !! that pretty tricky ! But ya I agree with Taxtips, it depends on many factors. Try giving a call to my accountant, he is great guy and will definitely help you with this situation. You will get his contact details on his website.

http://www.shoichet.com/
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09-04-2015, 05:17 PM
Post: #4
RE: accounting for the difference?
(05-14-2014 03:10 AM)Quebec Wrote:  Hello,
I have a company. the company did not buy a restaurant, it directly established a restaurant two years ago. During the two years, the company paid 30000$ for the equipment. Last month, the company sold this restaurant at 50000$. . in the contract, the notary noted 30000$ for the equipment and 20000 for goodwill.

the question is how the company make bookkeeping for this transaction?

thanks.

Are you trying on QuickBooks?
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