Cash book

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi

I was wondering if anyone could help i am confused with the cash book if nothing states weather vat has been added or not how do you know when to take vat away and when to add

thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Cash book

    Assuming that the business is registered for VAT and that transactions do not involve exempt or zero-retaed items then the cash book should include VAT information where appropriate.

    Receipts and payments from and to credit customers/suppliers will not have VAT recorded in the cash book as this will have been dealt with when the sales/purchases invoices have been processed. Receipts and payments from cash sales/purchases should have VAT recorded in the cash book. In most cases cash transactions will be inclusive of VAT.

    Hope this helps

    Chris

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