CR the VAT Control A/C with a VAT Refund from HMRC?

Hi guys (and gals),

I am doing AAT Level 2 at the moment and I noticed whilst doing a practice question that you CR the VAT Control A/C with a refund from HMRC and I can't seem to get my head around why? I understand the other side, DR Bank, but I can't seem to grasp why you CR the VAT Control. Could someone help me out, please??

Many Thanks

Answers

  • Krisso
    Krisso AATQB, AAT Licensed Bookkeeper Posts: 83
    Its the otherside of your double entry. When you paid the Vat out the posting would be debit vat control credit bank so this just works in the opposite direction.
  • SamTyler02
    SamTyler02 Registered Posts: 5
    Right ok - I might have been overthinking it. Seems pretty simple. Thanks!
  • Krisso
    Krisso AATQB, AAT Licensed Bookkeeper Posts: 83
    Drawing T accounts will help you with this. It can seem daunting at first but if you remember every posting must have an opposite then it makes these tasks easier.
Privacy Policy