How to enter vehicle purchase

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Subject Author Date How to enter vehicle purchase fredbear2412 01-09-2007  Re: How to enter vehicle purchase Peter Saxton 01-10-2007  Re: How to enter vehicle purchase Arno Martens 01-10-2007  Re: How to enter vehicle purchase Bob Williams 01-10-2007  Re: How to enter vehicle purchase charlesmh2000 06-10-2009
Posted by fredbear2412 on January 9, 2007, 9:39 pm Please log in for more thread options Company bought a vehicle using chattle Mortgage. So I set up a loan account so pmts each month can go to it. My question is how do I enter the purchase so I claim the 10% GST If I transfer $$ from loan account to petty cash & write a chq from petty cash I get the GST OK, but I also get the vehicl purchase price appearing on my P&L which is not correct - I think? Any help appreciated. UsingQB2005 Australian Version Posted by Peter Saxton on January 10, 2007, 2:53 am Please log in for more thread options wrote: >Company bought a vehicle using chattle Mortgage. >So I set up a loan account so pmts each month can go to it. >My question is how do I enter the purchase so I claim the 10% GST >If I transfer $$ from loan account to petty cash & write a chq from petty >cash >I get the GST OK, but I also get the vehicl purchase price appearing on my >P&L >which is not correct - I think? > >Any help appreciated. > >UsingQB2005 Australian Version > What's petty cash got to do with it? -- Peter Saxton from London peter@petersaxton.co.uk Posted by Arno Martens on January 10, 2007, 10:34 am Please log in for more thread options wrote: >Company bought a vehicle using chattle Mortgage. >So I set up a loan account so pmts each month can go to it. >My question is how do I enter the purchase so I claim the 10% GST >If I transfer $$ from loan account to petty cash & write a chq from petty >cash >I get the GST OK, but I also get the vehicl purchase price appearing on my >P&L >which is not correct - I think? > >Any help appreciated. > >UsingQB2005 Australian Version I don't know but if I had to do that I would set up a liability account for the moorage of the vehicle. Do the GST bit and charger the net vehicle cost (per moorage company) to that liability account. Book the monthly payments to that accounts. Once the vehicle is paid for, the balance on the liability account will be 0 (zero). I also would call the accounting department of the moorage company and ask them. You may not be the very first person who needs to know and the just may be glad to assist you. -- Arno Posted by Bob Williams on January 10, 2007, 9:18 pm Please log in for more thread options fredbear2412 wrote: > Company bought a vehicle using chattle Mortgage. > So I set up a loan account so pmts each month can go to it. > My question is how do I enter the purchase so I claim the 10% GST > If I transfer $$ from loan account to petty cash & write a chq from petty > cash > I get the GST OK, but I also get the vehicl purchase price appearing on my > P&L > which is not correct - I think? > > Any help appreciated. > > UsingQB2005 Australian Version Fred If the company is a cash payer for the GST, make sure that the loan is a chattel mortgage - it makes a difference to the way you claim the GST input tax credit. Here is the best way I know how, and I am assuming that no cash changes hands (in other words, borrow 100%). You should be able to work out the rest from that. Debit Motor Vehicles GST code is CAG for say $20000 (GST 2,000) Debit Unexpired Interest for say $5,000 for the full interest component of the loan Credit Chattel Mortgage Loan for $27,000. If there are other charges (registration, insurance, setup fees etc) debit those to the appropriate expense account or load them into the vehicle account. Each monthly payment is then say, 1/60 of the full loan, and the interest is amortised as 1/60 of the unexpired interest. You do it in a cheque as so Payment is say $400 First split line Chattel mortgage loan $400 Interest Paid NCF code $56 Unexpired interest -$56 You should set up non-current and current portions of the loan, but that just complicates the simple illustration. I hope this helps Bob Williams (in Oz and an Accredited Consultant)/CPA Posted by charlesmh2000 on June 10, 2009, 9:33 pm Please log in for more thread options charlesmh2000 had written this in response to http://www.rockryno.com/quickbooks/Re-How-to-enter-vehicle-purchase-2393-.htm : In the example was the entire lease for $20k and so principal is 15k and interest 5k? ------------------------------------- Bob Williams wrote: > fredbear2412 wrote: >> Company bought a vehicle using chattle Mortgage. >> So I set up a loan account so pmts each month can go to it. >> My question is how do I enter the purchase so I claim the 10% GST >> If I transfer $$ from loan account to petty cash & write a chq >> from petty >> cash >> I get the GST OK, but I also get the vehicl purchase price >> appearing on my >> P&L >> which is not correct - I think? >> >> Any help appreciated. >> >> UsingQB2005 Australian Version > Fred > If the company is a cash payer for the GST, make sure that the loan is > a chattel mortgage - it makes a difference to the way you claim the GST > input tax credit. > Here is the best way I know how, and I am assuming that no cash changes > hands (in other words, borrow 100%). You should be able to work out the > rest from that. > Debit Motor Vehicles GST code is CAG for say $20000 (GST 2,000) > Debit Unexpired Interest for say $5,000 for the full interest > component of the loan > Credit Chattel Mortgage Loan for $27,000. > If there are other charges (registration, insurance, setup fees etc) > debit those to the appropriate expense account or load them into the > vehicle account. > Each monthly payment is then say, 1/60 of the full loan, and the > interest is amortised as 1/60 of the unexpired interest. > You do it in a cheque as so > Payment is say $400 > First split line > Chattel mortgage loan $400 > Interest Paid NCF code $56 > Unexpired interest -$56 > You should set up non-current and current portions of the loan, but > that just complicates the simple illustration. > I hope this helps > Bob Williams (in Oz and an Accredited Consultant)/CPA ##-----------------------------------------------## Newsgroup Access Courtesy http://www.rockryno.com/ Tax and Accounting Software Forums Web and RSS access to your favorite newsgroup - alt.comp.software.financial.quickbooks - 7940 messages and counting! ##-----------------------------------------------## Similar Threads Posted Purchase Orders Remaining in Open Purchase Orders Report July 14, 2009, 9:11 pm Partner's Vehicle October 23, 2006, 7:58 pm Vehicle Trade-in February 15, 2009, 12:08 pm Trading in a vehicle June 6, 2009, 5:36 pm Purchase Orders January 26, 2007, 6:14 pm Purchase Orders #2 February 8, 2007, 8:58 am Purchase Order January 19, 2008, 2:13 am VAT & purchase orders March 12, 2009, 3:04 pm lease to purchase setup October 23, 2006, 3:11 pm Purchase Order Problem October 27, 2006, 2:23 pm