Short Answer Questions Again!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I'm now doing unit 3 and the question is all capital expenditure must be recorded via the purchases day book. True or false? Give reasons for your answer. Am I right in thinking thats false because it has to be recorded somewhere else with it being to do with fixed assets?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Short Answer Questions Again!

    Also how long should cheque counterfoils, expenses claims and delivery notes by retained for and how long should a business annual accounts be kept for? And does anyone know if a trader must deduct settlement discount from the net amount before calculating VAT? I'm finding these questions really hard and my book doesnt seem to have hardly any of the information I need!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Short Answer Questions Again!

    You're right to think this is false. The book of prime entry for capital expenditure is normally the journal. In addition fixed assets may be recorded in the fixed asset register (not part of the double entry system).

    Accounts and other supporting records need to be kept for six years for VAT purposes. For more info take a look at the HMRC website.

    Settlement discount should be deducted before calculating VAT (remember Unit 1?)

    Chris

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