New car bought - help needed

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
Hi I am still struggling on posting of a new car as an assett and the finance HP side I am sure there are some intelligent ones out there that can help

I thought it might be:

DR Fixed Assett
CR HP Loan account (Liability(

and also make up and expense account???

Any help would be grateful and I have to put it in my accounts!!!!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New car bought - help needed

    You are correct in your assumptions.

    Debit Fixed Assets (Motor Vehicle)
    Credit HP Liability (under the loans section)

    Each month/year you would credit the HP liability account with the value of the interest and debit Hire Purchase Interest in the profit and loss account. The interest element will be found on the HP agreement and is apportioned over the term of the lease.

    Kind regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New car bought - help needed

    Thanks Steve,

    I need to do this on sage and quickbooks so got a little confused

    Great help :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New car bought - help needed

    You don't know anything about CIS do you
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New car bought - help needed

    what do you need to know?

    Ste
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New car bought - help needed

    I have a client who has 18% deducted at source.
    Obviously his invoice is for the full amount to the client i.e. say £100.00 he gets 18% deducted when payment is received so lets say £75.00 rcd.
    Not sure how to deal with the vat element and payments side on quickbooks? as obviously it leaves say £25.00 outstanding from that client?????
    (I had made a nominal Liability up but it is messing the vat side up) so cannot do that no more...

    An suggestion would help
    You are a star

    Are you an accountant?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New car bought - help needed

    The £25 should be posted to an account equivalent to the PAYE/NIC liability account. In your scenario:

    Credit Bank £100
    Debit VAT (whatever it is - no calculator on me)
    Credit CIS Tax (equivalent to PAYE) £25
    Debit Sub Contractors (£75 less the VAT amount)

    The £25 tax is payable to the Revenue (because you have deducted it you obviously have to pay it over to them). It can be offset against the deductions you (the company) has suffered.

    Yes, I am an accountant (for my sins). I've done AAT and ACCA so know how stressed you all are at the minute!!

    Kind regards
    Ste
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New car bought - help needed

    Thanks will give it a go at home on my copy of quickbooks. Are you local to Devon? Always useful to have accountant links ie end of yr accts
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New car bought - help needed

    Sorry Caz, I couldn't be further. I'm in Bolton though we do have client's in Portsmouth (believe it or not).

    Kind regards
    Steve

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