VAT double entry help please (exam tommorrow)

topcat

Hi all,

what is the double entry on the vat account for:

• Amount Payable to HRMC , Amount Receivable to HRMC

I am guessing :

Payable to HRMC

Bank - credit
VAT account - Debit

Receivable from HRMC ]

Bank - debit
VAT account - credit

Rachie278

Hi

When I'm unsure, I think about the effect on the other account, so, if I'm paying the VAT, then money is coming out of the bank, so credit, and into the VAT account, so debit!

You could also think of it in the order you would be putting the balance into the trial balance with the word PEARLS......split PEARLS into two, you have PEA ......RLS

Purchases
Expenses
Assets

These 3 go on the Dr side

Revenue
Liabilities
Sales

These 3 go on the credit side!!

Hope that kinda helps

Good luck with your exam

topcat

thank you:001_smile:

Petana

Good luck with you exam today.