VAT registered company purchases Furniture for £20,000 inclusive of VAT.
The invoice has been received but not yet paid. Depreciation policy is 10% straight line starting in the month of acquisition with a full month charge.
what would be the double entry for the receipt of invoice and then the accounts at end of month?
Replies (3)
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Presuming able to fully recover vat:
Dr Vat 3333.33
Dr Furniture 16666.67
Cr Creditors(PLCA) 20,000
Depreciation each month is then:
£16666.67/120months , so £138.89 per month
Do you deal with accounts as the answer for anyone that does is fairly obvious?
Well, if they cannot give you an answer do not employ them to deal with your books (well at least re vat and depreciation) .
It must be pretty tricky interviewing for a role outwith your own comfort zone, I do not envy you.