Hi, I am recording a purchase of a new vehicle.
My journal enrty look like this,
suspense $93,000 DR / TAX CODE NT
suspense $3,000 CR cash deposit value / TAX CODE NT
Land Rover chattel mortgage account $73,000 money borrowed / TAX CODE NT
Motor vehicle at cost $17,000 trade in on personal vehicle / Which tax code do l use? l'm thinking NT cause l personally own the car l was trading in.
I think you should get your accountant to assist with this
However, if the car is private and not registered to the company and hasn't had any expenses against it then it is drawings/Capital Contribution so NT would be correct at this stage
Advice from your accountant is advised as if the company/business now owns this car there is a GST component that can be claimed. The value of the vehicle presents other issues like luxury car tax etc
Lisa
