stuck on a question on unit 5

taskeytaskey Font Of All KnowledgePosts: 1,800Registered
Hi all

hope you can point me in the right direction. i have some extra questions to do and the following is one of them

-the following entries are missing
vauxhall motor car acquired for a list price of 17600
vat @17.5% 3080
excise duty 190

total 20870.

was paid for by cheque in full settlement.

write out the entries but remeber VAT is not recoverable.

so would the entries be

bank 20870 C
vehicles 17600 d
vat 3080 d
excise duty 190 d

or am i wrong. i am positive i put it like this in the original sim, but failed it???

Hope someone can help

Tracy

Comments

  • crispycrispy Trusted Regular SouthamptonPosts: 454Registered
    If the VAT is not recoverable then it would therefore be included in the cost of the vehicle.

    Also, I would think to include the excise duty - as it was incurred in bringing the car to current position. So journal would just be: -

    Dr Motor Vehicle @ cost £ 20,870
    Cr Bank £ 20,870
  • taskeytaskey Font Of All Knowledge Posts: 1,800Registered
    ah that is where i went wrong then.

    thanks for your help

    Tracy
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