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Ordered new vehicle and deposit paid

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Hi

It's been a while since I've had a cut off issue and looking for a quick answer.

1 week prior to the yearend my client has ordered a van and paid a deposit.  They have received confirmation of the order but not an invoice.  The balance was paid by finance once the van was delivered 8 weeks later. 

Can I bring the vehicle in and claim CA's or will it the deposit simply appear as an asset on the balance sheet?

I suspect the latter but hoping for the former.  

Thanks all.

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By meadowsaw227
30th Jun 2021 10:05

I would not claim CA`s and just show the money paid as a deposit on the balance sheet.

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paddle steamer
By DJKL
30th Jun 2021 10:33

Something niggles from memory that to claim CAs the asset has to start being used in the business, that has evidently not happened pre year end.

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Replying to DJKL:
Psycho
By Wilson Philips
30th Jun 2021 12:12

Being brought into use matters in some cases (eg HP assets) but in general it doesn't really matter. The key point is to establish when there is a legal obligation to pay for the asset, which is usually on delivery.

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By BMary83
30th Jun 2021 10:46

Thank you both.

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