Hire purchase

I have a question how to move liability from client account to Hire Purchase account. What I mean is that in a case of purchase of a asset the purchase invoice is posted in an normal way which means that liability for that invoice goes to 2100 Creditors Control Account. In that particularly case though it should go to 2310 Hire Purchase. How do I move out the liability from the specific client account to Hire Purchase account then?

Is it not as simple as debiting the liability account and creditign the HP account?

In QuickFile you can only mark a purchase as paid using a bank account - if you were to journal the liability directly over from creditors control to hire purchase it’d still show as unpaid. You’ll have to “pay” the purchase from a non-bank bank account such as drawings or director loan, then manually enter a matching “money in” transaction in the same account and tag that as “something not on the list” to the hire purchase nominal.

1 Like

That makes sense, thank you for your respond.

This topic was automatically closed after 7 days. New replies are no longer allowed.