I am a bookkeeper for a local restaurant and am seeking advise as to whether or not I am accounting correctly for vouchers. There are 2 types of vouchers:
1) Vouchers sold with a face value eg meal for £50.
When these are sold I do the following entry with the full voucher value:
Dr cash / Bank
Cr Other creditors - vouchers
On redemption I account for the VAT and do the following:
Cr Sales (net value)
Cr Output VAT
Dr Other Creditors - vouchers (gross amount)
2) Vouchers gifted eg for auction at charity events etc
As these ase are not "sold" for a monetary value I do not account for them until they are redeemed, at which point I do the following:
Cr Sales (full voucher amount)
Dr P&L expenses - promotions
I do not account for VAT on these as the business is not receiving any payment.
Please could anyone advise if the above treatments are correct.
Thanks !
Replies (1)
Please login or register to join the discussion.
re vouchers
Point 1 is fine, point 2 I think i would change the debit to Charity donations, if to a charity, sales promotions if not