Brewery Discount Statement

JodieR
JodieR Registered Posts: 996 Beyond epic contributor 🧙‍♂️
edited June 18 in AAT member discussion
Previous accounts show a loan to the brewery of £11k and the statement from the brewery shows that the loan is now £8k. There are no actual cash repayments to this loan, it seems to be that each month the outstanding loan is reduced by 5% of the brewery invoices. I'm happy that I need to debit the loan account with £3k for the year, but where does the credit entry go? I'm guessing to the same account which the brewery invoices are coded to, is that correct?

Comments

  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    The credit will be against Purchases. This is standard practice to use discounts offered to repay brewery loans
  • JodieR
    JodieR Registered Posts: 996 Beyond epic contributor 🧙‍♂️
    Thanks very much!
  • JodieR
    JodieR Registered Posts: 996 Beyond epic contributor 🧙‍♂️
    There's no VAT implications of this is there?
  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    JodieR wrote: »
    There's no VAT implications of this is there?

    No

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