for VAT on sales:Debit ReceivablesCredit VATCredit Salesfor VAT on purchases:Debit VATDebit PurchasesCredit Payables
The VAT can affect the accounting equation in two different ways. The accounting equation is ASSET=CAPITAL+LIABILITIES So, if VAT is OWED from HMRC (receivable) it will be an asset, so the asset will increase and the Capital will increase as well. ASSET+X=CAPITAL+X+LIABILITIES, where X is the amount of VAT received. If VAT is owed TO HMRC (payable), then the liabilities will increase, which means that the capital will decrease with the same amount. ASSET=(CAPITAL-Y)+(LIABILITIES+Y) where Y is the amount of VAT to be paid.
Yes. QuickBooks supports Cash, Flat Rate, and Standard VAT accounting schemes for both monthly and quarterly VAT submissions. QuickBooks accounting software calculates the amount of VAT you owe and reminds you when it’s due. Our smart error-checking technology checks for common mistakes and lets you make an online submission directly to HMRC. Hope You Find This Useful, Peter
The accounting treatment for reimbursement will be an expense to the organization. This will be credited on the cash book which indicates that the company has paid out money.
The accounting treatment for transaction costs are as deductible for equity range. Since the IPO is defined as the first issuance of equity. Accounting also treats transactions of cost for IPO as a merger accounting method.
How does the accounting treatment of a partner's salary differ from that of an employee's salary in a partnership?
One proposed treatment is as follows: [Debit]Reserves xxxx [Credit] partner's capital account xxxx
Expensed as incurred
In general, licensing agreements are considered to be a supply of services and are subject to VAT in many jurisdictions. The specific VAT treatment may vary depending on the nature of the license and the laws of the country in which the transaction is taking place. It is advisable to consult with a tax advisor to determine the VAT implications of a particular licensing agreement.
Tally is a financial accounting with inventory and account only. The journal entry allows for notations, explanations and adjustments. This can be done through a narrative attached to the worksheet.
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The types of VAT........ 1 ) INPUT VAT @ 4 % 2 ) INPUT VAT @ 1 % 3 ) INPUT VAT @ 12.5 % 4 ) OUTPUT VAT @ 1 % 5 ) OUTPUT VAT @ 4 % 6 ) OUTPUT VAT @ 12.5 %