Could anyone advise on a debt that we had that is now paid off as follows
Our Accounting year starts Feb
we had an invoice we couldn’t pay in full at the time and the supplier gave us a payment plan from march13 to march14
the invoice is from March 13 and has been paid off at £100 a week and was cleared in March 14.
we are on cash accounting, but am confused at if the invoice and VAT is split across both periods or the period when its finally paid in full ?
It would be actual cash paid for vat cash accounting purpose. you need to account for vat as per payment done not invoice basis
ok thanks @FaradayKeynes , but problem i have then is that the invoice was for say:
£3400.00
but the invoice is split
VAT Rated goods
Zero Rated goods
Exempt of VAT goods
How would i work that out ?
And thanks for your help
how much is actual vat on invoice ?
Not sure i have to dig the invoice out, as i have been putting off dealling with it till now for the question above
Also how would i enter it in this system since last years accounts we on a different system that is no longer used, how would i enter the invoice for this year as part is in last years period and the date on the invoice is last year ?
Invoice would be recorded in last year account as expense and other bit will stay in current creditors till paid off. Only vat reclaim on expense is cash basis
at a guess the VAT is around £350 - £450
not sure i understand fully.
Invoice is in old system last year, ( i understand this and that the amount will stay in current creditors for this year till paid)
but what to apply the payments to as i dont have an invoice in this years accounts to apply the weekly payments to ?
You can journalise it
Ok lol, will have to leave it to my accountant then, i dont like those and is one of the few things i struggle to understand.
Thanks for the help