Unit 5 - Simulation
System
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Hi all<BR><BR>Im currently doing my unit 5 FRA simulation in two parts and wondered if anybody could help me. <BR><BR>If the cost of a van is able to recover its vat and I need to process the transactions in the Fixed Asset Register and Ledger then would I put the cost of the car plus vat in the Fixed asset register ? <BR><BR>Would I put the cars cost as a debit in the cars fixed asset account, a debit in the vat account, a debit in the vehicle excise account, and then the total as a credit in the purchase ledger acount. What if there is no purchase ledger account though. My simulation just has a purchases account and sales account but no ledger control accounts so where do I enter the total amount. I also have to put the part ex cost as a debit in the Purchase Ledger control account as need to credit it out to the disposal account. Not having the purchase ledger control account has thrown me.<BR><BR>Also what is the sundry creditors account mean.<BR><BR>Thanks <BR>Kate<BR><BR>
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Unit 5 - Simulation
Purchase ledger control account usually deals with the suppliers of raw materials and supplies. Some companies keep accounts of other creditors separate.<BR>in this case if u purchase an asset on credit , you would use the sundry creditors account. it simply means other creditors or misc. creditors.<BR><BR>if vat is recoverable, u will use only the cost in the fixed asset register as vat will go to the vat account .<BR><BR>if vat is irrecoverable then use the full amount - cost + vat in the fixed asset register.<BR><BR>hope this helps0 -
Unit 5 - Simulation
if trader creditors relate to purchases, then "other sundry creditors" i would imagine relate to the following:<BR><BR>Wages o/s at the year end <BR>VAT liability<BR>PAYE liability<BR>possible any loans within 12 months<BR>Any accruals<BR><BR>it's just a thought!0