Prepayments (In the Work place)

columbia

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

GILL

You don't need to do anything with the VAT element.

Something to do with VAT being due at time of invoicing etc.

columbia

Thanks Gill

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