Advise needed on liability, assests and vt+

gregory

Hi all,
I have posted what is below previously but in wrong thread by mistake. I just need your comments on posting in VT+.

Amount of £700 took from Credit Card to buy an asset. What I did...create a credit card bank account. Posted as money out from it to a current bank account. Then from there as money out to "Assets"/"Equipment, machinery...". But I am not sure is that what I should have done it.
Or maybe I should posted it as "Liability/Loan" and corresponding post to "Assests/Equipment, machinery, etc".
Please if anyone could advise upon it that would much appreciate.
Thanks

coojee

You set up a credit card account like a bank account (if it's a company credit card) and DR asset, CR credit card. Then when the credit card gets paid off you DR credit card and CR bank.

If it's a personal credit card then you DR asset and CR some kind of loan/liability account depending on whether it's a limited company or sole trader/partnership. Then same again if the credit card is paid off, DR liability account and CR bank.

Monsoon

What coojee says.

When in doubt, the bookkeeping mirrors what happened in real life. Stick to that and you can't go far wrong.

gregory

Thanks coojee and Monsoon,
He is a sole trader and used a private credit card.
Yours help is always fantastic

gregory

I have just one thing in mind....I will depreciate all cost in S.A. but what I should with VT+? Am I charging depraciation as normal? But then in S.A. add 700 GBP to expenses or leave it as Small pool as i am going to do?

Not been for a while as had a new PC and waited quite long to be delivered.
Thanks for answers

Monsoon

Depreciation and capital allowances are two separate things.

Depreciation goes in the accounts as a journal in VT.

Depreciation gets added back in the tax comp, and capital allowances are claimed instead.