Prepayments (In the Work place)

columbia
columbia Experienced MentorRegistered Posts: 580
Hi Guys

Hope everyone is well and had a well deserved bank holiday rest!

I am approaching my works year end, and other than doing prepayments and accruals on an extended trial balance at college this will be the first time I do it for real!

Now my brain has stopped working, and my notes are all at home, I cannot remember what I do with the VAT elements, do a show them as prepayments as well??

Sorry, I really ought to remember and I assume that I must show the vat as a prepayment or else the accounts will not be true to the accruals concept, but I really have gone totally blank.

Any advice greatly received (as always!!)

Tracy

Comments

  • GILL
    GILL Feels At Home Registered Posts: 31
    You don't need to do anything with the VAT element.

    Something to do with VAT being due at time of invoicing etc.
  • columbia
    columbia Experienced Mentor Registered Posts: 580
    Thanks Gill

    Most appreciated! Don't recall any college simulations involving the VAT so I was confused!
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