Share this content
0
417

Loan account posting - cash accounting

VAT Cash Accounting

Didn't find your answer?

Search AccountingWEB

Company A is owed £60k from Company B, which is a connected company.

Company A provides services to Company B totalling £48k. My question is, no money is going to be exchanged between the parties because the amount due will contra against the loan balance between the entities reducing the debtor to £12k, but does this transacation count as a payment for VAT Cash accounting purposes and therefore the VAT can be reclaimed by Company B.

Replies

Please login or register to join the discussion.

04th Oct 2018 16:19

I vote Aye.

Thanks (0)
avatar
04th Oct 2018 22:15

Do you mean ‘by Company A’?

Thanks (1)
avatar
By Jigs
to andy.partridge
05th Oct 2018 07:32

Thank you - Edited!

Thanks (0)
Share this content