Advise needed on liability, assests and vt+
gregory
Registered Posts: 37 Regular contributor ⭐
Hi all,
I have posted what is below previously but in wrong thread by mistake. I just need your comments on posting in VT+.
Amount of £700 took from Credit Card to buy an asset. What I did...create a credit card bank account. Posted as money out from it to a current bank account. Then from there as money out to "Assets"/"Equipment, machinery...". But I am not sure is that what I should have done it.
Or maybe I should posted it as "Liability/Loan" and corresponding post to "Assests/Equipment, machinery, etc".
Please if anyone could advise upon it that would much appreciate.
Thanks
I have posted what is below previously but in wrong thread by mistake. I just need your comments on posting in VT+.
Amount of £700 took from Credit Card to buy an asset. What I did...create a credit card bank account. Posted as money out from it to a current bank account. Then from there as money out to "Assets"/"Equipment, machinery...". But I am not sure is that what I should have done it.
Or maybe I should posted it as "Liability/Loan" and corresponding post to "Assests/Equipment, machinery, etc".
Please if anyone could advise upon it that would much appreciate.
Thanks
0
Comments
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You set up a credit card account like a bank account (if it's a company credit card) and DR asset, CR credit card. Then when the credit card gets paid off you DR credit card and CR bank.
If it's a personal credit card then you DR asset and CR some kind of loan/liability account depending on whether it's a limited company or sole trader/partnership. Then same again if the credit card is paid off, DR liability account and CR bank.0 -
What coojee says.
When in doubt, the bookkeeping mirrors what happened in real life. Stick to that and you can't go far wrong.0 -
Thanks coojee and Monsoon,
He is a sole trader and used a private credit card.
Yours help is always fantastic
0 -
I have just one thing in mind....I will depreciate all cost in S.A. but what I should with VT+? Am I charging depraciation as normal? But then in S.A. add 700 GBP to expenses or leave it as Small pool as i am going to do?
Not been for a while as had a new PC and waited quite long to be delivered.
Thanks for answers0 -
Depreciation and capital allowances are two separate things.
Depreciation goes in the accounts as a journal in VT.
Depreciation gets added back in the tax comp, and capital allowances are claimed instead.0
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