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Subject Author Date
How to enter vehicle purchase fredbear2412 01-09-2007
Posted by fredbear2412 on January 9, 2007, 9:39 pm
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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
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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
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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
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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
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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






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