Accrue for VAT on purchases?

I have started a small business and am pulling together the monthly management accounts for the Board but am coming across a number of probably very simple accounting/book keeping problems.

The first I have a dilemma over is the treatment of VAT on monthly accrued expenses, should this be recorded as follows?

1. DR P&L expense: £100

2. CR Balance sheet accruals: £120

3. DR Balance sheet VAT debtor: £20

 

OR should I ignore VAT as I don't have an invoice for the accrued expense? 

Any thoughts would be appreciated!

Thanks

 

 

S

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VAT accruals

John Cotter |

No ...

Old Greying Accountant |
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We are invoice accounting and

simongreenaway |

No problem

Old Greying Accountant |
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