A question regarding the double entry when applying the Global Accounting Scheme.
So far I have been unable to find a software that posts the correct double entry to the system I am therefore planning to do the correct double entry manually.
First I would post the sale, example £2,000, dr Customer £2,000 cr sales £2,000. If the margin is £500, dr sales £83.33 and cr VAT liability £83.33. Just checking that the double entry is correct.
Thanks.
Replies (2)
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I agree with the maths and the journal entries.
The only disagreement that I have is that the illustrative figures infer a purchase price of £1,500, and in my opinion the Global Acounting Scheme is only applicable where the cost price is £500 or less per item.