Receiving Gifts

Sharonjayne
Sharonjayne Registered Posts: 12
Our paper supplier have given us a cheque for being such wonderful customers. They are VAT registered and so are we. We are also a Limited Company. How do I account for the money received?

Comments

  • KernowAccountant
    KernowAccountant Registered Posts: 103 Epic contributor 🐘

    Our paper supplier have given us a cheque for being such wonderful customers. They are VAT registered and so are we. We are also a Limited Company. How do I account for the money received?

    Dr Bank, Cr Sundry income.
  • Sharonjayne
    Sharonjayne Registered Posts: 12
    How about VAT?
  • KernowAccountant
    KernowAccountant Registered Posts: 103 Epic contributor 🐘
    If it genuinely is an unsolicited gift then I would surmise it is not consideration for a supply and hence VAT isn't relevant.
  • Sharonjayne
    Sharonjayne Registered Posts: 12
    Thank you
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