If there were to be one months payment to become accrued, would both the HP company (£933.33) a/c, and the HP interest expense (£100) a/c need accruing? Or just the HP account?
Thanks
__________________
Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Hi Emmiestar. Thanks for your reply.
Can I assume then from your description that you do not hold the value of the interest payable as a liability in the balance sheet?
As in a HP suspense account?
I figure your HP company is shown in the BS as a liability net of interest.
The PL will show the HP interest paid during a 12 month period.
I can't see where the total interest figure is stored.
Unless I'm missing something?
Thanks
__________________
Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
No dont show the interest as a liability. As the interest isnt a liability only the capital is. If you were to cancel the agreement then most agreements only require the capital to be repaid not the interest. Though some agreements have an early exit fee which would obviously become a liability of the option to terminate early was taken.
So the interest is only recognized as it is paid each year in the P&L.
I have just searched as I have the same question. I can follow Emmiestars response - thank you! but have a question - I also use sage
I had to send an invoice to our HP company - I have yet to post it, as not sure what to do with it here are the figures
We purchased a products for stock - paid for it - then got finance on it (HP) with a buy back £50 at the end of the 36 months. Finance Co wanted an invoice from us - total amount we paid for it from our supplier.
But on the Invoice less a deposit paid (even though we didnt pay a deposit on it to them, we had already paid for the goods) so invoice is for £9104.63 + vat (£1820.93) total £10,925.56
They paid us £8194.17 + HP Charges £1762.35 + doc fees £200 - Payable HP £10156.52- the supp invoice is already paid off as it was a bank transfer when it was ordered (loan followed weeks later), our Cust Inv is un posted at the moment £10,925.56 that the finance co wanted
I have changed the figures to ours following Emmiestars but still cant see what to do with the sales invoice (unposted at the moment) to the Finance co - Its not a sale, so dont want to put it into our sales ledger and the acceptance fee £200
Hi Kayrn
So hows about an intro before we start. We always ask newbies!
Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.
Also can you add your first name so that it appears under the signature bar on your posts? Saves everyone looking it up each time!! (Edit profile --->signatures)
Would also suggest you start a new post rather than dig one up that is so old, although feel free to 'link' to this one.
What do you mean by products for stock?
Have you drawn up T-accounts? Often focuses the mind.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I have just searched as I have the same question. I can follow Emmiestars response - thank you! but have a question - I also use sage
I had to send an invoice to our HP company - I have yet to post it, as not sure what to do with it here are the figures
We purchased a products for stock - paid for it - then got finance on it (HP) with a buy back £50 at the end of the 36 months. Finance Co wanted an invoice from us - total amount we paid for it from our supplier.
But on the Invoice less a deposit paid (even though we didnt pay a deposit on it to them, we had already paid for the goods) so invoice is for £9104.63 + vat (£1820.93) total £10,925.56
They paid us £8194.17 + HP Charges £1762.35 + doc fees £200 - Payable HP £10156.52- the supp invoice is already paid off as it was a bank transfer when it was ordered (loan followed weeks later), our Cust Inv is un posted at the moment £10,925.56 that the finance co wanted
I have changed the figures to ours following Emmiestars but still cant see what to do with the sales invoice (unposted at the moment) to the Finance co - Its not a sale, so dont want to put it into our sales ledger and the acceptance fee £200
My other Q - why did the HP company ask you to send them a sales invoice?
Have they taken ownership of the asset in some legal form (other than via the documentation ie what security have they taken over the asset and has the asset been marked in some way?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
We hire out drapes, video products to corp parties
The sales invoice is what I dont really get which is why I have not posted it as of yet - I dont believe it should go down as a sale as i would have to do a purchase invoice to contra it with? but I dont think it should be in our sales ledger
I have 3 of these to do, and another on its way so I want to get it right the first time. I have never done HP before over, I have read so maybe too much and now, cant get my head around.
