The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Simple VAT question
Post Info TOPIC: Simple VAT question
Sirocco


Member

Status: Offline
Posts: 20
Date:
Simple VAT question
Permalink Closed

I recently purchased a new van for the business on HP and posted a journal entry in Sage to Debit Motor Vehicles (0050) £9500 and Credit HP Finance (2310) £9000

I have just realised that I have made no VAT postings.
How can I get the £1800 VAT into the VAT purchases control acct.

I know there is a simple answer!
Can someone help?
Graham

__________________
nautica


Veteran Member

Status: Offline
Posts: 69
Date:
Permalink Closed

Hi i would just revere the Journal and renter it

As

DR   0050 Motor Vehicle   £7.700

DR   2202  vat                      £1.800

CR   2310  Hp                       £9.500 

 

But looking what you have put if you paid £9.500 inc vat then it should be

DR 0050    Motor Vehicle £7916.67

DR 2202    VAT £1583.33

CR 2310   HP   £9.500

ps i missed out the road tax you will have to account  for that

Martyn



-- Edited by nautica on Monday 21st of March 2011 02:10:31 PM

-- Edited by nautica on Monday 21st of March 2011 08:54:34 PM

-- Edited by nautica on Monday 21st of March 2011 08:55:39 PM

__________________
Lumpy


Veteran Member

Status: Offline
Posts: 25
Date:
Permalink Closed

Are the first registration fee and the road fund tax for the new van either zero rated or exempt from VAT?

__________________
annepebo


Veteran Member

Status: Offline
Posts: 66
Date:
Permalink Closed

I wouldn't ever post a journal to a control account - debtors, creditors or Vat.  If you post a journal to these accounts your control acounts will not balance to the aged debtors, creditors reports or vat return, and in my view is a definate no no.  These accounts should all balance and be regulary checked that they do. I would not want to have to do a reconciliation of these accounts when it is not necessary. 

I would post the invoice via a supplier account then the vat will show on the vat return correctly. Code all the elements to wherever they need to be - 0050 for the van, 73?? for road tax etc etc. I would then enter a credit on the same supplier account for the total amount financed coded to HP (2310 or wherever) and tax code T9.  Allocate the invoice and credit against each other via bank.



-- Edited by annepebo on Monday 21st of March 2011 07:44:47 PM

-- Edited by annepebo on Monday 21st of March 2011 07:45:48 PM

-- Edited by annepebo on Monday 21st of March 2011 07:46:39 PM

__________________
Anne P
Sirocco


Member

Status: Offline
Posts: 20
Date:
Permalink Closed

Thanks both, and I thought this was a simple qu.!
I ended up with a slight modification on annepebo's suggestion.
I posted dummy transactions for the purchases through the bank ac using T25 for Van purchase, T2 for the RFL and T9 for the HP Credit.
This got the VAT in the Purchase control 2201 and then I made journal entries to reverse these transactions to keep the nominal ledger balances correct.

Hopefully we wont be buying another van anytime soon.
Graham

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Simple VAT question
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About