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cash accounting for asset purchase on finance

when do I account for 0% finance payment instalments when using cash accounting?

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When using cash accounting do I put the full cost of an asset through at the time of purchase, or when each instalment is made over2 years on 0% finance?

I understand that using the std VAT scheme means all the VAT is reclaimed at the

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By Confused78
23rd May 2018 21:07

It depends what was purchased and if it is subject to VAT.

If it was me and it was an asset I would debit the asset register and credit the hp agreement. On balance sheet
Payment each month are then posted to the hp agreement.

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By Davenport
24th May 2018 15:22

I thought the question did relate to the Cash Accounting treatment. How do you have a fixed asset with cash accounting when they go through as an expense?

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