Please excuse my ignorance, I'm new to book keeping. I'm putting my brother's sole trader accounts into sage instant accounts. He has just bought a new car on HP, I know how to record all the numbers on the agreement (eg delivery, VAT & all the HP details etc), but I'm stuck on how to record the Scrappage allowance which is right at the very bottom of the agreement. It's only a small amount, but obviously needs to be accounted for in order to b/l the debits & credits. Can anyone tell me which nominal account/ code it is in Sage Instant Accounts please?
Was the vehicle that was scrapped included on the balance sheet before?
If so, put the scrappage amount as a credit in [Motor Vehicle] Disposals. (You'll need to journal in the net book value as a debit, which will be the net of the cost in Motor Vehicles, and the total depreciation in Motor Vehicles Depreciation).
If not, it's capital introduced.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Thanks for your reply, sorry, I didn't make my question clear enough! No vehicle was scrapped, just a brand new car bought on HP. The details are;
Cash price Inc VAT £35,000
HP Interest £3,756.72
Deposit £5,000
HP £29,450
HP Interest £3,756.72
Man' Scrappage Allow' £550
It is the manufacters scrappage allowance that is puzzling me, how do I account for it? On the HP agreement the £550 has been added to the deposit (making it £5500).
