VAT double entry help please (exam tommorrow)
topcat
Registered Posts: 452
Hi all,
what is the double entry on the vat account for:
I am guessing :
Payable to HRMC
Bank - credit
VAT account - Debit
Receivable from HRMC ]
Bank - debit
VAT account - credit
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
0
Comments
-
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 exam0 -
thank you:001_smile:0
-
Good luck with you exam today.0
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