Prepayments (In the Work place)
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
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
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Comments
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You don't need to do anything with the VAT element.
Something to do with VAT being due at time of invoicing etc.0 -
Thanks Gill
Most appreciated! Don't recall any college simulations involving the VAT so I was confused!0
