Vat code for journal entries of director's expenses

Vat code for journal entries of director's...

Didn't find your answer?

Could you please tell me what VAT codes should I enter on Sage 50 when recording journals for business expenses paid by director (the owner)?

Here are some examples:

1) When there is a VAT to be claimed:

DR Expenses account £50 - VAT code?

DR 2201 (Purchase Tax Control Account) £10 - VAT code?

CR 2301 (Director's Loan Account) £60 - VAT code?

2) When there is no VAT to be claimed:

DR Expenses Account £60 - VAT code?

CR 2301 (Director's Loan Account) £60 - VAT code?

I would be grateful for your help.

Thank you!

Replies (2)

Please login or register to join the discussion.

avatar
By RFL H
24th Oct 2014 18:04

The answer is

For 1 - T1 for the expense and the 2201, T9 for the 2301

For 2 - T0 or T9 (depending on the expense item) for the expenses code and T9 for the DLA.

You will find it much easier to create a "bank" account to process all payments made by the director - Call it Paid by Joe Bloggs or similar.

At the end of each month you can process a single Bank Receipt (T9) to NC 2301 to clear the balance down to zero.

Thanks (1)
avatar
By Madi
24th Oct 2014 19:14

Thank you very much. It is very helpful.

I just can't get my head round the VAT codes for journal entries. I understand now at least the codes for these expenses.

 

Thanks (0)