Need advice how to account for a new van purchase on finance with part exchange of old van (old van wasn't accounted for on sage instant) and what do i need do with regard to depreciation and the interest on payments? Fairly new to Sage so simple explanations would be useful :) Thank you in advance!
Hi there.. would you let me know if you are sole trader or limited company, whether you are VAT registered, and if you feel comfortable, provide the figures.
Vehicle price
Accessories/extras price
Car tax?
VAT added
Total vehicle invoice amount.
Part ex price
Deposit paid in excess of part ex (if applicable)
Amount borrowed to clear vehicle invoice
Loan advance fee
Interest to be charged
Any fee paid at end of HP agreement
Repayments per month and how many months.
I would leave interest to the accountant. They can use one of two methods - straight line, or, rule of 78 - first one is easier, second one usually allows you more tax relief in the earlier years of the loan.
